my father transfered a property now worth 1 mil bought for $225K as gift deed to son?son owes taxes or not?



property when bought for 225K and is now approx 1 mil and is a business property? question is that does my brother owe taxes on it? does my brother have to file the ” gift ” on tax returns?

my father transfered a property now worth 1 mil bought for $225K as gift deed to son?son owes taxes or not?
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2 Replies to “my father transfered a property now worth 1 mil bought for $225K as gift deed to son?son owes taxes or not?”

  1. Gift Tax returns and Gift Taxes are filed and paid by the giver of the property, not the receiver.

    Your father owes the IRS a gift tax return and may or may not owe gift taxes.

    If your brother sells the property, his basis would be the $ 225k plus improvements (if any) less depreciation.


  2. If your father was the giver, HE is the one who must file a gift tax return, and pay a gift tax if it’s due. The receiver would owe no tax on the transfer, although he’d owe property tax on it, and capital gains tax if he sells it.





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