Expert Q&A

The answer to this question depends on a variety of factors. What state you live in, the cost basis versus value of the property, your taxable estate etc. However for a basic standpoint, you have the ability to gift out of your estate up to $5 million dollars this year. This estate planning strategy will end in 2013 and will be decreased to $1 million. This will help get assets out of your estate if you are subject to potential estate tax issues and provide a way for your children to take ownership of the property.

You could sell it at a discount to avoid paying a steep capital gain tax. for example tthe land value is 50,000.00 sell it at 5000 to minimize your capital gain. Do not sell it for one dollar to avoid being audited or arbitrarily taxed