If a married couple residing in Florida, gifts a rental property, to the husband's father's revocable living trust, is this considered a sale of the property? If it is, what would the sales price be?

ANSWER

The BIDaWIZ Team's Answer:

Rental property gifted to a living trust is treated as a gift and not a sale. In addition, the same trust obtain's the donor's basis as per Internal Revenue Code Section 1015(a) and IRS Publication 559. Please note that the lifetime gift tax exclusion can be claimed by the donor if the property is in excess of the annual gift tax exemption (IRC Section 2503(b)).