Negating Real Property Deed

Couple A deeded real property (which was and is their personal residence continuously for 30+ years) to Couple B, for no monetary consideration, retaining a Life Estate, and maintaining full possession and control of the property. A year later, Couple A wants to rescind the transfer. Couple B has no objection to Couple A's change of heart/mind but doesn't want to incur any expenses or financial obligations as a result of the aborted transaction. What are the federal tax implications for Couple B if they deed their future interest in the property back to Couple A?

Reply to
paultry
Loading thread data ...

The original transaction can't be revoked. Therefore, it seems you have a gift of the remainderpersons interest that gets valued using IRS Pub

1457. A federal gift tax return would have to be filed. If the remainderpersons are residents of a state that also has a gift tax, then there would be another gift tax return to file.
Reply to
Alan

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.