Hello. I am the original poster of the following thread:
I am using a different screen name because I can not find the login information of my old screen name.
Last year, my mother added me to the title of her home, in a Joint Tenancy with Right of Survivorship (JTWROS) situation. She also gave me a small cash gift of a few thousand dollars. I'm trying to explain to my mother that she has to fill out Form 709, to inform the IRS that she gave me a gift of over $14000.
Unfortunately, the attorney who handled the JTWROS matter, did not mention anything about Form 709. And my mother believes that, if the attorney did not mention Form 709, then my mother does not have to fill out that form. Also, my mother argues that she and my father did not have to fill out such a form when they paid my college tuition. Therefore, she does not have to fill out this form now.
So, does my mother have to fill out this form? If yes, and if she does not do that, what are the penalties?
Also, my mother deducts her property tax from her federal income tax using Schedule A (Itemized Deductions). Since I am now owner of half of the house, my mother expects me to pay half of the property tax. However, she wants the following situation to occur:
She writes a check for the entire property-tax bill. I write her a check to reimburse her for half of the property-tax bill. She deducts the ENTIRE property-tax amount on her Schedule A form, as if she paid the entire property-tax amount herself and was not reimbursed. This sounds illegal and fraudulent to me, but I want other people's opinions as well.