I would treat the gift to coincide with the transfer date. My rationale is that when you buy or sell a property, the deed is NOT recorded on the actual date of settlement, but rather the sale date is listed on the deed.
In your case, the fact that it could take months to record the deed is irrelevant as the transfer date should be the date that appears on the deed. This is especially true in light of the delays resulting from Covid-19.
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Stephen MankowskiCPA
MANKOWSKI ASSOCIATES, CPA, LLC
smankowski@mankowskicpa.com215-682-7366
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Original Message:
Sent: 11-01-2021 11:49 AM
From: James Kalaitzis
Subject: When is a gift of real estate recognized?
I have a client gifting a vacation house to their children. The transfer date on the deed is October 20th. However, we were informed that the recording of the deed could take several months in Suffolk County. If the deed is recorded in 2022, should we report the gift on a 2021 or 2022 gift tax return?
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James Kalaitzis
JAMES KALAITZIS, CPA, PC
Commack NY
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