Question

Gift tax

Forum|Forum|4 years ago
September 12, 2021
1 reply
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My aunt added me as Joint tenants with rights of survivorship to her house and she also gave me $100,000. What paper work will she need to file? Is it Form 709? Do I need to file any form with my tax return?

macuser_22

Employee

Yes, she needs to file a form 709. You file nothing.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

macuser_22

Employee

@macuser_22 wrote:

Yes, she needs to file a form 709. You file nothing.

Just note that if this was done to avoid probate then it will do that, but if she passes and you sell the property then your capital gains tax will be based on her cost basis in the property when she purchased it. If she simply willed the property to you then your cost basis steps up to the assessed value on the date of death.

That can be thousands of dollars in tax difference depending on the circumstances and values.

This method of passing property is often the wrong way to do it and can cost the benificuary big bucks.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**