First of all, I am not an accountant and I strongly recommend speaking with your accountant about tax implications before making a gift of real estate.
Most Americans will not need to pay a gift tax when gifting real estate. However, you will probably need to file an IRS Form 709 and a tax may be assessed by the state of Florida on the transfer of your real estate if there is a mortgage.
Florida – The only tax you might incur from the state of Florida when gifting your home is Florida documentary stamp tax. Florida documentary stamp tax would only be owed in a gift situation if the property is encumbered by a mortgage. In all Florida counties, except Miami-Dade county, documentary stamp tax owed would be $0.70 for every $100 of the mortgage at the time the property is transferred. In Miami-Dade county, documentary stamp tax owed would be $0.60 for every $100 of the mortgage for residential real estate and an additional $0.45 for every $100 of the mortgage for commercial real estate. Keep in mind also that if you are gifting a property encumbered by a mortgage, you will need the consent of your lender.
IRS – As of 2024, there is a gift tax exclusion of $18,000 per year. This means that you will not be taxed by the federal government on gifts up to $18,000 per year. If the gift exceeds $18,000, then the person making the gift will need to fill out an IRS gift tax form (Form 709). The gift tax form is not meant to prevent gifting property. Instead, it is meant to prevent people from avoiding paying taxes when transferring their wealth.
In addition to the $18,000 yearly gift tax exclusion, everyone has a lifetime gift tax exemption of $13.61 million as of 2024. Gifts over $18,000 count toward the lifetime exemption. The lifetime exemption includes gifts you give while alive that are over $18,000 and the value of property you leave to your heirs when you die. Thus, if you gift a house and you have not exceeded your lifetime $13.61 million gift tax exemption, then you will not be taxed by the IRS.
Overall, there will likely not be a tax assessed when gifting real estate if the property is not encumbered by a mortgage and the value of the gifted real estate does not exceed the lifetime gift tax exemption.