Giving the gift of a house is a great way to share real estate with someone you care about. Here are some common benefits:
Avoiding gift taxes
For most people, gifting a house is a great way to give a valuable gift without having to pay the gift tax associated with something like a cash gift.
Saving on capital gains taxes
You can also gift a house to someone to save on capital gains tax from the sale of the home. In this scenario, gifting a home to a family member can save thousands in taxes. When the recipient sells the home, the capital gains will be based on their (presumably lower) tax bracket rather than the gifter’s.