What are the tax implications of giving away property?

Giving away property can have tax implications depending on the age of the recipient and the circumstances of the gift. In Washington, gifts given to a person who is under 18 years of age are considered the responsibility of the legal guardian and are therefore taxed as if the guardian had earned the income. Similarly, gifts given to someone who is over 18 years of age are taxed as if the recipient had earned the income and may be subject to Washington State taxes. For elderly individuals, particularly those who are thirteenth generation or younger, it is important to remember any gift given away may be considered a taxable transfer of wealth. To avoid paying taxes on the transferred property, the giver may take advantage of the estate and gift tax exclusion which allows gifts of up to $15,000 per year to an individual without triggering a tax obligation. It is important to remember that the gift tax rules change from state to state, so it is always best to consult with a qualified elder law attorney before making a transfer of property. Furthermore, when transferring real property, it is always best to have attorney prepare the necessary documents to ensure the transfer is properly recorded with the county clerk.

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What are the tax implications of giving away property?

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