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February 6, 2025
Question

My name was added to the deed of my parent's house. Any tax forms that need done?

  • February 6, 2025
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    1 reply

    February 6, 2025

    No, not as far as your income tax return in concerned. Their gift of ownership in the house is not taxable to you. The only thing I would caution you about though is with a gift you treat their cost basis of the house as yours. So if the house went up in value since they owned it, you will have to pay tax on that increase when you sell the house, assuming the gain is not exempted for some other reason, such as it being your personal residence. By virtue of being a part owner, the part of the house that now belongs to you will likely result in your basis being less that it would be if you weren't put on the deed. 

     

    If it stayed in their name until they died, your cost basis would be the fair market value on the day they died, so you would not have to pay tax on the increase in value while they owned the house.

     

    Also, they are required to complete a gift tax return if they gifted a portion of the house to you and the cost basis of your share is more than $36,000, the limit for a married couple for gift taxes in 2024. You can find out more about this from the instructions to Form 709.

     

     

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