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 donor giving the gift has to file it on their taxes,..”
If that is the case then I am in deep dodo.
Geez Louise!
I can’t believe Canada is better in this regard!
Parents can give unlimited amounts of money to their kids, tax free.
if you time it right, you can double the gift in two days.
Gift on dec31, then gift on jan 1