curiousgeorge
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Post by curiousgeorge on Feb 25, 2015 14:01:49 GMT -5
Hello!
Own a NYC co-op apartment purchased 15 years ago. Not selling, but plan to add friend as a co-owner.
Is this considered a gift that requires gift tax reporting? What would be the amount of the gift?
Half of original cost basis when purchased?
OR, half of adjusted cost basis at the time friend is added as co-owner?
Thank you!
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rangerj
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Post by rangerj on Mar 3, 2015 10:12:49 GMT -5
You are giving your friend a partial interest in your co-op and it is a gift. The gift amount is the fair market value on the date of the title transfer. The gift would require a gift tax return if the amount exceeds the annual exclusion amount for the year the gift takes place. There could be gift tax if your lifetime gifts exceed the "GIFT" exclusion amount. See a tax professional and you will most likely need a professional appraisal.
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Deleted
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Post by Deleted on Mar 3, 2015 10:15:00 GMT -5
Why?
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rangerj
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Post by rangerj on Mar 4, 2015 16:20:09 GMT -5
Why what?
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Deleted
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Post by Deleted on Mar 4, 2015 20:05:28 GMT -5
Why are you making your friend half owner of your condo?
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rangerj
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Post by rangerj on Mar 4, 2015 20:15:31 GMT -5
That is a good question. If there is something in the reason for the transfer that would indicate some sort of compensation that would change the tax consequences.
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Shooby
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Post by Shooby on Mar 4, 2015 20:42:38 GMT -5
Yes. Why?
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curiousgeorge
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Post by curiousgeorge on Mar 5, 2015 14:08:18 GMT -5
Thanks much Ranger.
There is no "something in the reason for the transfer that would indicate some sort of compensation that would change the tax consequences."
A co-op apartment is not a condo. A co-op apartment owner owns a stock certificate for a number of shares for an apartment. With the stock certificate is a Proprietary Lease from the Co-op corporation, which is really a Lessor and the co-op owner as specified in the stock certificate, is/are lessees. Only these lessees and family members approved by the corporation can stay in the apartment.
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rangerj
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Post by rangerj on Mar 5, 2015 20:29:12 GMT -5
Does the property gifted have value?
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curiousgeorge
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Post by curiousgeorge on Mar 6, 2015 9:58:56 GMT -5
Thanks Ranger.
Yes - gifted property has value.
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Shooby
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Post by Shooby on Mar 9, 2015 5:45:07 GMT -5
I think owning things in common is a bad idea for the most part. The only person I want to own anything in common with is my spouse. Otherwise, I think it creates a lot of complications. What are you going to do if this friend, who now has ownership, decides on completely different things for this property?
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