Supposedly it’s considered a gift and not taxed but I would not be suprised if Brandon and his 87,000 IRS agents changed that.
If I want to gift to my child, there is a limit on that gift of I think $15K per year. Anything above the limit is taxable. Why would an anonymous ‘gift’ from strangers not be subject to same? Or perhaps as long as the gift from each stranger is not beyond the limit?
Only if the giver pays the gift tax.
If the giver doesn't pay, then the money is considered income and the recipient must pay income tax.
IIRC, gifts are taxable to the donor if they are over a certain amount. Back when I gifted money to my children it was $10 or $11K and I had to split over multiple years.
With this being multiple donors, I’d assume the IRS would take its bounty off the total amount in the account (out of whatever is left beyond the house purchase).