But this can affect anyone encountering the below two scenarios.
Two common homeowner decisions — transferring property to family and using home equity — carry tax reporting requirements that most people never learn about until it's too late. These tools help you understand what's at stake before you act.
Watch a 2-minute overview of both tools
Added a family member to your property deed? This tool shows whether the transfer triggers a Form 709 gift tax filing requirement — and estimates the reportable gift value based on your home's current worth.
Took out a home equity loan or line of credit? The IRS only allows interest deductions if the money was used for specific purposes. This tool tells you whether your use qualifies — and what to do if it doesn't.
When you add someone to your property deed, the IRS treats it as a gift of real estate. If the value exceeds the annual gift tax exclusion ($18,000 per recipient for 2024–2026), you must file IRS Form 709. This calculator estimates your exposure.
Current fair market value of the entire property
Remaining mortgage balance, if any
What share of ownership was given
Each recipient gets their own $18,000 exclusion
Married couples can split gifts, doubling the exclusion to $36,000 per recipient
Educational purposes only. This calculator provides estimates based on general IRS rules. It does not account for state gift taxes, prior gifts in the same year, or other factors that may affect your specific situation. Consult a CPA or Enrolled Agent specializing in real estate taxation before making any decisions. The annual gift tax exclusion is $18,000 per recipient for 2024–2026 (IRS Rev. Proc. 2023-34).
Since the Tax Cuts and Jobs Act of 2017, the IRS only allows you to deduct home equity loan interest if the funds were used to "buy, build, or substantially improve" the home securing the loan. This checker tells you where you stand based on how you used the money.
Your first mortgage + HELOC combined. Deduction limit applies to the first $750,000 of total mortgage debt ($375,000 if married filing separately).
Educational purposes only. This tool applies general IRS rules from the Tax Cuts and Jobs Act of 2017 (IRC Section 163(h)(3)). It does not replace professional tax advice. Interest deductibility depends on specific facts including documentation, loan origination dates, and state tax rules. Consult a CPA or Enrolled Agent before claiming deductions. The $750,000 limit applies to loans originated after December 15, 2017.
