If you pay highest tax rate, time to get an accountant

If your capital gain tax rate is 20%, it is possible to save 5% by gifting it to your son and let him claim 15% capital gain rate. When he sells it he claims your cost basis 3 years ago, and that is long term gain.

Gift tax:

You either pay gift tax (which defeats the whole purpose), or you can avoid gift tax by claiming unified credit, essentially the gift is coming out of your estate after death. Unified credit comes out of your estate tax exemption (5 mil for single, 10 mil for couple), so if you give your son $500K this time, you can only leave him 4.5 mil later estate tax free.

Get an accountant and do this for you and your son.

P.S. it is not quick claim, it is quitclaim.  You are "quitting" your claim on the property.  Time to get a lawyer too I think. 

所有跟帖： 

• so it is about 7k saving for a lot of trouble. doesn't seem to b -gqc- ♀ (0 bytes) () 03/10/2015 postreply 05:39:11

• where else can he save 7K by just filing some papers? -柠檬椰子汁- ♂ (48 bytes) () 03/10/2015 postreply 05:44:46

• Wow, thank you very much! I will -meowi- ♀ (271 bytes) () 03/10/2015 postreply 11:13:55