My mother-in-law convey her house to my husband with a quitclaim deed. (She still owes about $40,000.00 on the mortgage loan...
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Answer:
Gift taxes are taxes that supplement the Estate Tax. Gift taxes are placed on gifts given away to any person while you are still living, so that you may not avoid estate taxes by making gifts of your estate. You may give up to $12,000 a year in cash or assets to an unlimited number of people each year without incurring gift tax liability, but the gifts must have no conditions attached. Married couples can give, as a couple, a $24,000 gift per year to as many people as they want. Under federal tax law, gifts totaling more than $12,000 to one person in one year are considered a taxable gift and generate a potential gift tax. Gifts beyond the $12,000 are considered "taxable gifts." However, gift tax is not due to be paid until you give away over $1,000,000 in your lifetime.
