NASSAUSUFFOLK

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  • 1.  When is a gift of real estate recognized?

    Bronze Most Valuable Member
    Posted 11-01-2021 11:49 AM
    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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  • 2.  RE: When is a gift of real estate recognized?

    Platinum Most Valuable Member
    Posted 11-02-2021 09:55 AM
    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.com
    215-682-7366
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    Original Message


  • 3.  RE: When is a gift of real estate recognized?

    Silver Most Valuable Member
    Posted 11-02-2021 05:00 PM
    A gift is complete when it is delivered and accepted.  The delivery to the County recording office and the fact that the deed was not recalled is evidence of a completed gift.

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    Robert Barnett
    CPA, ESQ.
    Capell Barnett Matalon & Schoenfeld LLP
    Syosset NY
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    Original Message


  • 4.  RE: When is a gift of real estate recognized?

    Bronze Most Valuable Member
    Posted 11-03-2021 08:27 AM
    Thanks for the responses.  It is much appreciated.

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    James Kalaitzis
    JAMES KALAITZIS, CPA, PC
    Commack NY
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    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.