All Forum Posts by: Rik Patel

If it’s worth more than $15-$16k there’s a gift tax consideration. But that’s on the giver, not the receiver. They can declare it as part of their lifetime estate gift limit. It that is also on them. You should be golden no matter what they do. As long s it’s free from liens, liabilities and lawsuits. 

@Rik Patel

As others have mentioned, if this is a 'gift', then there may potentially be a gift tax filing requirement on the giftor.

If you will now own the property as tenants in common upon added you to title.
You may be required to report the rental income if the property is a rental.
You may be required to report the income if the property is sold shortly thereafter.

You want to keep track of what your 'basis' is in the property as that will be important when you dispose of your interest in the property.

Rik,

If you or your family member is looking to get some cash in hand from that sale/transfer the best way to handle that transaction is by doing a "Gift of Equity" purchase.  That way you can use the equity for the down payment and the closing costs which is the same as a refinance.  Gift of equity is a lot easier than dealing with the IRS considering you can gift over a Million before you start having issues.

Giving away more than $15,000 requires you to complete a federal gift tax return, though you don't actually have to pay any tax until your combined lifetime gifts (in excess of the annual exclusion) exceed the lifetime gift tax exclusion, which is $11.70 million in 2021 (up from $11.58 million in 2020)

I had water damage to the interior of the unit due to a hurricane. after about a week the mold build up was noticeable and I had a mold inspection done.  The mold was severe enough that it because a health risk.  At the time of the damage I told him he needs to move but he stayed on for another two weeks.   I just informed him that the lease was terminated and the unit was not inhabitable.  He was notified that the mold removal crew would be there in 3 days and he should have all of his stuff out.   He wanted me to pay for his expenses but because the lease had that clause he had no recourse. He even went to a few lawyers but none would take his case.  Later I got a message that he was going to sue me for medical expenses.  Once again he could not get a lawyer to accept his case.   From the day of the damage I begin to send him emails to move out and referred to the clause in the lease. The time to sue has elapsed so I don't worry abut that anymore.  Now with each tenant I review that clause, however I don't mention my past experiences.

DAMAGE TO PREMISES. In the event the Premises are destroyed or rendered wholly uninhabitable by fire, storm, earthquake, or other casualty not caused by the negligence of Tenant, this Agreement shall terminate from such time except for the purpose of enforcing rights that may have then accrued hereunder. The rental provided for herein shall then be accounted for by and between Landlord and Tenant up to the time of such injury or destruction of the Premises, Tenant paying rentals up to such date and Landlord refunding rentals collected

1. 1. uninhabitable, the Landlord shall have the option of either repairing such injured or damaged portion or terminating this Lease. In the event that Landlord exercises its right to repair such uninhabitable portion, the rental shall abate in the proportion that the injured parts bears to the whole Premises, and such part so injured shall be restored by Landlord as speedily as practicable, after which the full rent shall recommence and the Agreement continue according to its terms.