What are the tax implications of giving away property?

When giving away property—such as money, real estate, or other assets—in the state of South Carolina, the gift giver must consider the tax implications. Generally, gifts of up to $15,000 per year are not taxable; however, if an individual exceeds this limit, they may be liable for federal gift taxes. Additionally, state gift taxes may be applicable depending on the size of the gift and the state. In the state of South Carolina, gifts of real estate may have an additional tax consequence: the Payment-in-Lieu-of-Taxes (PILoT). Depending on the agreement between the parties, PILoT may be due upon transfer of the property. This payment is not technically a tax; rather, it is a negotiated payment the property owner pays in lieu of property taxes. When giving away an asset, the gift giver should consult an elder law attorney who specializes in estate planning. This attorney can walk the gift giver through the applicable taxes and potential exemptions, such as the annual gift tax exclusion. The attorney can also advise the gift giver on how to minimize the gift tax liability and any potential PILoT payments.

Related FAQs

What is a durable financial power of attorney?
What is a life estate deed and how does it work?
What happens if I do not create a power of attorney?
How do I plan for Medicaid eligibility?
What is an injury or wrongful death action?
How much does it cost to hire an Elder Law lawyer?
How do I plan for long-term care and elder care needs?
What is a medical alert system and how does it work?
What is a living probate?
What is a spendthrift trust?

What are the tax implications of giving away property?

Related FAQs

Related Blog Posts