(MONEY Magazine) – REAL ESTATE Q. My parents bought a second house 15 years ago for $18,000. The house is now worth $140,000, and my parents recently paid off the mortgage. They want to transfer the deed to my sister, who currently rents the house. Will the Internal Revenue Service consider this a gift and, if so, who pays taxes on it? Janet Cascio Copiague, N.Y.

A. Yes, a house can qualify as a gift. As for gift taxes, the liability lies with the giver. But in your parents' case, no taxes may be due. Under federal law, a person can give or bequeath $600,000 of property tax-free; married couples can transfer $1.2 million. Any gifts or bequests with values that exceed those amounts are taxed at 37% to 55%. All individuals also have an annual $10,000 gift-tax exclusion for each person to whom they make a gift. Hence, your parents could consider the transaction as separate $70,000 gifts. Subtract the $10,000 exclusion and each parent would be making a $60,000 gift, the value of which is well within the $600,000 limit. No state gift tax would be due either, because New York allows each person a $108,333 lifetime gift- tax exemption.

COLLECTIBLES Q. I have an original copy of the Ulster County Gazette in Kingston, N.Y. dated Saturday, Jan. 4, 1800. The paper gives an account of President George Washington's death and funeral. Does the issue have any value, and where can I get it appraised? Lindon L. Lancaster Florence, Colo.

A. Since there are only two authenticated copies of that date's Gazette, prized for its detailed account of Washington's death, Jim Lyons, a Los Altos, Calif. dealer in rare newspapers, says your copy might fetch as much as $10,000. Now for the not-so-good news: thousands of commemorative reprints of the Jan. 4, 1800 Gazette are in circulation; they date from as early as 1850 ! and have little value as collectibles. The Library of Congress has issued a circular listing 11 attributes of the real thing. Key is that the copy be printed on so-called laid paper, handmade from rags. Such paper is soft and pliable, yet rough in texture. For a free copy of the circular, write to the Library of Congress, Serial Division LM 133, Washington, D.C. 20540. If your copy meets each test, you might advertise your treasure in the newsletter Collectible Newspapers, P.O. Box 19134, Lansing, Mich. 48901. A half-page ad costs $15.

INSURANCE Q. Seven years ago, I put $15,000 in a single-premium annuity. The cash value today is more than double my initial investment. Can I withdraw the money to buy a higher-paying annuity without being taxed on the gain? Robert Heppe Fairfax, Va.

A. Yes. Just have your new insurance company send a tax-free exchange form to your old insurance company to effect the transfer. One word of warning: most companies charge a surrender fee of 1% to 6% if an annuity is cashed in or transferred before a specified date, generally five to eight years after it was bought.

MORTGAGES Q. I finished paying the first mortgage on my house a few months after taking out a home-equity loan. Does the status of the home-equity loan now change since it is the only mortgage loan remaining on the house? Howard A. Straight Damascus, Md.

A. No. The terms of the home-equity loan remain exactly as they were, although it now probably becomes the first lien on your home in the event you default on your payments.

PENSION PLANS Q. I recently left a job in which I had both a qualified profit-sharing retirement plan and a 401(k) tax-deferred savings program. Since I am now self-employed, I want to transfer the distributions from my previous plans to a new Keogh account. My accountant told me, however, that I can't commingle the money from the qualified retirement plan and the 401(k) for this purpose. Is this true? Ann L. Halpern Glendale, Ariz.

A. No. You can transfer a distribution from a qualified plan -- profit sharing or 401(k) -- to another qualified plan such as a Keogh or Individual Retirement Account within 60 days and generally avoid taxes. But William Offutt, a tax partner with the accounting firm Grant Thornton in Washington, D.C., points out that your tax-free rollover can consist only of the part of the distribution that would have been included in your taxable income, not distributions representing after-tax contributions.

MUNICIPAL BONDS Q. I own several different tax-free municipal bonds, and I find it difficult to get information regarding their call features. Is there any service that offers this information? Milton Rubin Baldwin, N.Y.

A. Yes. Check your local library for a copy of Moody's Municipal & Government Manual. This publication, which is updated twice weekly, provides call (early payoff) features and notices for bonds issued by every municipality in the U.S. with at least $1 million in debt. You can also ask the broker who sold you the bonds to keep you informed of calls.

TAXES Q. How much money is generated for the presidential election campaign by the $1 checkoff on IRS Form 1040? How much does each political party get? Jim Boo Kansas City, Mo.

A. In tax year 1986, the $1 checkoff generated $33.6 million. The 1986 sum was the lowest since the $33.7 million in 1976, the first year matching funds were awarded to presidential candidates. In 1984, for example, the comparable figure was $35 million. During that election year, Democratic contenders received $25.7 million, and about $9.7 million went to the Republicans. Candidates who qualify for matching funds get $1 of federal money for every dollar they raise, up to $250 per individual contributor. President Reagan holds the record as the largest individual beneficiary of federal campaign funding. Between 1976 and 1984, he got $90 million in federal funds for his primary and general election campaigns.