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playball · May 17, 2009, 07:44 PM

I live in Ohio, we have taken care of my father-in-law in his house for the past 4 years. We have been advised that the house may be transferred to my husband because we have kept him from a nursing home. He has Alzhiemer's disease. If we transfer the house will there be any taxes we have to pay either this year or later?

Zazonker · May 17, 2009, 08:03 PM

I'm not quite sure what you are asking, but having lived through a similar situation, I'm wondering if your point is that as long as your father-in-law owns the home, there are complications in getting care for him. If you can clarify, I think I can help you better. Also, a key point would be: is your husband the sole heir, or are there siblings who have an interest.

Beyond that, by transfer the house, I assume that you mean "gift" it from your father-in-law to your husband. Assuming that your husband has the legal power of attorney to do that, there are a number of issues there taxwise, but IRS Pub 709 applies. Look at it and see how it applies to your situation. At least that should get you closer and you could post more specific questions if you have any.

playball · May 18, 2009, 10:27 AM

In the state of Ohio, if you resided in the house of the parent and are the primary caregiver of your parent for more than two years (keeping them out of nursing home) the house may be transferred to that child. Medicaid, medicare accept this even with a 5 year look back.

We have received no compensation for taking care of FIL for 4 years. We would like to transfer the house with the help of our lawyer. He says on next years taxes we have to claim it. Does this come with some sort of tax that we will have to pay?

AK lawyer · May 18, 2009, 10:54 AM

Originally Posted by playball

... Does this come with some sort of tax that we will have to pay?

Gift tax. But there is an exemption: "A lifetime gifting limit of $1,000,000 (gifts above the annual exclusions) is allowed before a gift tax is incurred.:
Gift tax in the United States - Wikipedia, the free encyclopedia

So if the house is not worth more than $1,000,000 It doesn't look like there is cause for concern.

You should also see if Ohio has a gift tax that applies.