Q: After receiving money from a house sale do i have to pay taxes on it in april or can i gift it to my wife?
My grandparents house was sold and it will be split 5 ways. After taxes and fees ill receive 42,800, will i have to pay taxes at the end of the year for it or can i gift it to my wife or use most of it as a down payment for my first house ?
If i do have to pay taxes how do i figure out what to put aside so i can pay it all at once?
A: The answer to your questions requires more time and expertise than an online forum like this can provide. You really need to consult with a tax professional like a CPA on this. It will be well worth the money you spend in fees to them.
Bruce Alexander Minnick agrees with this answer
A: Generally, federal gift taxes do not apply until the value of the gift exceeds $30,000 per person. However, you should consult a tax lawyer in Massachusetts because they may also tax gifts.
You need to consult with your accountant. They can determine what you will owe if anything. For example, if you inherited the property you will get a "step up" in the basis to the fair market value at the time of the death of the person who left you the property. If that is the case then you may not owe anything unless you held onto the house for a long time.
There are too many variables for us to give you a good answer on this format.
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