Hello. My name is Richard, and I have been a licensed attorney for over 25 years. How are you today?

Good, thank you. I will need a minute or two to type out your response.

When your girlfriend transfers an interest in the property to you via a quitclaim deed without receiving anything in return, it’s generally considered a gift for federal tax purposes. Because no payment is made, the transfer qualifies as a gift.

For federal gift tax purposes:

• If the value of the interest transferred is below the annual exclusion amount, there typically wouldn’t be a tax due or even a need to file a gift tax return.

• Separately, for property tax purposes in Chesapeake, Virginia, you must be listed as an owner to qualify for the disabled veteran property tax exemption (Virginia Code § 58.1-3219.5). So, if your name is added to the deed, that requirement would be met.

When you receive an interest in property as a gift, meaning no money changes hands, the transaction is treated as a gift for federal tax purposes. Here are some other things to keep in mind:

• The gift tax rules apply to the person giving the gift, not the recipient.

• If the fair market value of the interest transferred is below the annual exclusion amount, your girlfriend wouldn’t need to file a gift tax return, and no tax would be due.

• Even if the value exceeds the annual exclusion, it’s her responsibility to file a return, but she wouldn’t actually owe tax unless she exceeds her lifetime exemption amount.

Under current federal law, the lifetime gift tax exemption is $13.99 million per individual. This means your girlfriend can give away up to that amount over her lifetime (in addition to the annual gift exclusions) before any gift tax would become due. Any gifts made under that threshold, when combined with the annual exclusions, wouldn’t trigger gift tax.

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