Poundkey
Recycles dryer sheets
Back in January, I posted that my sister was selling her half of a farm in Iowa. http://www.early-retirement.org/forums/f28/need-some-leagal-advice-please-32644.html She has agreed to give me first right of refusal per the contract btw.
Now the question....
One of the lots which is of particular importance is jointly owned by both of us, the deed has both of our names on it. This lot has the grain silos, barns, and cattle pens on it.
She has generously offered to "gift" her half of this lot to me so that the farm can stay operational. She also suggested the possibility of selling it to me for $1 thinking it might save me from paying a gift tax (I assume I will have to pay a gift tax). The portion she intends to gift has a tax value of $24K. I don't use a tax attorney or preparer so thought I would ask here about the best way to proceed on this.
Other info that might help....I reside in Texas and the farm is in Iowa.
Any thoughts as to the advantages or disadvantages of gifting vs selling for $1?
Thank you for any help
Now the question....
One of the lots which is of particular importance is jointly owned by both of us, the deed has both of our names on it. This lot has the grain silos, barns, and cattle pens on it.
She has generously offered to "gift" her half of this lot to me so that the farm can stay operational. She also suggested the possibility of selling it to me for $1 thinking it might save me from paying a gift tax (I assume I will have to pay a gift tax). The portion she intends to gift has a tax value of $24K. I don't use a tax attorney or preparer so thought I would ask here about the best way to proceed on this.
Other info that might help....I reside in Texas and the farm is in Iowa.
Any thoughts as to the advantages or disadvantages of gifting vs selling for $1?
Thank you for any help