Sold Land After Fire Want To Give Proceeds To Sister?
I Had my primary home burn down . (No One hurt) insur paid off. Now someone wants to buy the property for $17k . How can I give the money to my sister so she can use it for a down payment on her a new home. Is there anyway I can keep from paying taxes on this ? Is There any tax breaks since the house was a total loss ?
Thanks Ed :-?
No taxable loss because you were fully reimbursed by the insurance company. The sale of the land may be a taxable event.
You can give your sister $17K without paying any Gift Tax, though any amount in excess of $11K must be reported on a Gift Tax Return (Form 709). Unless you have made reportable gifts in your lifetime that total a rather substantial amount (like one million $), the Gift Tax Return is only informational with no actual tax due.