If you receive real estate with a gift deed, you are responsible for the taxes and liens or judgements on the home. This includes maintenance of disrepair. Oftentimes when family members live in other cities or states, they really don’t have time to take care of a home. Therefore, property gifts can become expensive and time consuming due to upkeep and maintenance. If you leave your new property’s lawn untrimmed, the city could fine you in what could amount to tens of thousands of dollars. Gift deeds are not considered income. If the home is sold, the income is taxable. When a gift deed is created, it is important to know if you are subject to federal gift taxation for the home or property. If that taxation is not paid by the donor, the recipient is going to be responsible for that tax.