What would the gift tax be on this property?
Class: INDUSTRIAL
Land Appraisal: $ 99,800
Building Appraisal: $ 177,800
Total Appraisal: $ 277,600
Total Assessment: $ 111,040
This is a 4300 sq ft office building, I am going to use to start a city-wide business. Could someone please tell me the gift tax on it?
Im located in Memphis, TN (Shelby County).
My grandfather is going to give me this property. I am going to pay the taxes on it. He purchased this property for $20,000.
Could someone give me an estimate of what the taxes would be for an estate under $1,000,000 and an estate over $1,000,000.
Will the gift taxes be 48% of the value, or will the gift tax be less?
Could he just sell me the property?
It would be much better if he gave it to you in his will. If he gives it to you in his will then your cost-basis will be the then current value. If he gives it to you now then your cost-basis will be his original cost. For example, if it is worth $300,000 now and he gives it to you, and you later sell it for $400,000. You’ll pay taxes on $380,000 ($400,000 – $20,000). If you get it via his will, the taxes will be on $100,000 ($400,000 – $300,000). As far as estate (gift) taxes. There are none in 2010. In 2011 it will be 55% of the value of the estate over $1 million. You should hire a good estate lawyer to go over all the options and costs. This is a very complex area of law and might effect his ability to get medical services through Medicaid if not done correctly.