To avoid gift taxes, is there a way to gift a percentage of a home to another in increments of $11,000 until the full value is gifted (i.e. parents gifting home to children)?
History: Tax-free gifts are available up to $11,000 per year. For example, a married couple can each use their own gift tax exclusions and gift a total of $22,000 per year per to each of their children. The concept of doing this annually to reduce the size of a future estate is called an annual gifting program. There are two problems with the idea of gifting a percentage of a home. The first problem has to do with figuring out what percentage of the home is worth $11,000. To do this accurately, an appraisal should be completed every year. The second problem has to do with the fact that the donor(s) may choose to continue living in the home. This represents a gift of a future interest and does not qualify for the gift tax exclusion. A way around this would entail gifting the full ownership immediately, subject to the donors right to live in the house until they die. This is attractive from an estate tax planning standpoint because the value of the interest can be discounted due to the d
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