My daughter and son in law are selling their house and buying a new one. My aunt has offered to help with the down payment. The question is should the check be in the lender’s name or my daughter’s name. Thinking about taxes. Thanks for the advice
My internet is back!!!
The 5th Spectrum guy figured it out!! A loose wire somewhere down the driveway, I guess where it connects at the street
Now, I have a lot to catch up on! I felt like I’ve been back in the ‘80s. Whenever it was pre- digital. Sure I’m glad I kept collections of hard copy books, it’s been enjoyable reading them and my eyes actually feel a lot better.
Hope your eyes are doing well spunky
should probably contact an accountant who deals in taxes.
Interesting question!
I found this:
https://www.realtor.com/advice/finance/down-payment-gifts-tax/
Here’s an example of how families can amass a bigger gift under that regulation: Each member of a couple trying to get help with a down payment can receive $15,000 from each parent. So Mom gives $15,000 to her daughter and $15,000 to her son-in-law, and Dad does the same. That means that one set of parents could give the couple a total of $60,000 tax-free. And then the husband’s parents could do the same.
CB - Apparently that was an older article because I found this on another site:
https://www.americancentury.com/insights/gifting-home-down-payment-child/
In 2024, you can gift up to $18,000 ($36,000 for a married couple) to each recipient without incurring gift tax liability.
Annual Gift Tax Exclusion
For 2024, the IRS gift tax exclusion is $18,000 per recipient, which is adjusted for inflation (subject to $1,000 increments). A married donor can double the annual exclusion gifts to each recipient by “splitting the gifts.” That means that you and your spouse can each gift up to $18,000 to anyone, including adult children, in general with no gift tax implications.
For example, if your child purchases a home with a spouse, you and your spouse could each gift up to $18,000 to each of the buyers for a total of $72,000.
CB- probably worth a one-time consultation with an accountant or real estate attorney, but I am finding the same information on multiple sites. The donor giving the gift has to file it on their taxes, not the recipient. The IRS adds up how much the donor gives over their lifetime to see if they can hit their estate with a higher tax
” The question is should the check be in the lender’s name or my daughter’s name.”
Make the checks out to the children. Then the children pay the lender. Like cotten’s research shows people can be gifted up to so much without paying taxes on it. I have been doing so the past 3 years gifting my children.