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Selling a piece of land,then giving proceeds to adult children,,,
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Boone & Crockett
Posted 8/20/2026 08:25 (#11733021 - in reply to #11733008)
Subject: RE: Selling a piece of land,then giving proceeds to adult children,,,


Slugbait - 8/20/2026 08:13

r82230 - 8/19/2026 15:13

For 2026 the annual gift tax exclusion amount is $19,000 (the same as 2025 was). per person PER year. What this means is that Dad can give $19K to all three sons as an example. If wife agrees, they can make it a joint gift of $38K (two times $19K). Now if all three sons are married, then mom & dad can give the each of the spouses $38K too.

HTH


This is a common interpretation of the gifting limits, but it is incorrect. You can gift up to your lifetime limit in one year. The $19,000 and below just doesn’t need any additional paperwork. Above $19,000 there is an IRS form for reporting the gift amount.
And with current,very generous federal estate tax exemptions, gifting loses much of its appeal/benefit. Biggest thing is loss of basis step up. The most for the least strategy, IMO, is to do a simple Transfer on death deed, get it recorded. Now it’s not a probate item. Heir receives basis step up and ownership on Testaors last breath.(like most good deals, there is usually a drawback of some sort, TOD is no different) If you’re in a state that has hard to stomach state estate tax, such as Illinois, there are legal methods to get around it without gifting.I’m not opposed to gifting when it makes sense. But it needs to be compared to other methods available, that may be a better solution. Edit too add; Every strategy produces different results/outcomes. IMO, based strictly on the OP’s provided info, I doubt gifting is his best option. But it takes a deeper dive than what’s provided into family dynamics/finances to make sure.

Edited by Boone & Crockett 8/20/2026 09:05
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