Home Buying in 07044>Question Details

Olimits7, Renter in Nutley, NJ

My parents are gifting us $100K for the down payment of our house; would they be charged a gift tax for doing this?

Asked by Olimits7, Nutley, NJ Sun Apr 7, 2013

The money they are providing us has already been taxed and is just in their savings. I never heard of this "gift tax" until someone I was talking to mentioned it the other day. I would hate for them to have to pay additional tax now. I read on the IRS site that the applicable exemption is up to $5,000,000; so I'm hoping I'm reading this right and they won't need to pay additional taxes on this?

Help the community by answering this question:


You should really ask your tax advisor, as agents are not really allowed to give what may be considered tax advice.
1 vote Thank Flag Link Sun Apr 7, 2013
The lifetime gift exemption changes each year(5,250,000 for 2013). Your parents can give you the 100K and they still will not pay taxes on it. Form 709( gift tax return has to be filed) in order to comply with the IRS regulations.

If you need further assistant please call me


Isaac Levinzon
0 votes Thank Flag Link Sat Jan 4, 2014
Call your accountant and ask your parents to do the same. Your best interests and theirs may not be the same in this situation.
0 votes Thank Flag Link Tue Sep 24, 2013
First of all ..LUCKY YOU to have parents that will hand over a $100,000 gift to their child! The best person to pose this question to is an accountant. Real Estate agents are not qualified to give tax advice. What I can tell you is, to make your life easier when it comes time to purchase the home you're
buying, have the money deposited into your account 60 days prior to making an offer. If it shows in your account for two consecutive statement cycles they usually don't demand proof of where it came from, saving you and the parents the hassle of letters of proof and statements and cancelled checks trail etc.

PS Would they adopt me?? :-)
0 votes Thank Flag Link Mon Apr 29, 2013
I agree with Trevor, talk to your tax advisor for accurate information, they have the whole financial picture.
0 votes Thank Flag Link Mon Apr 8, 2013
Good morning Olimits7,

The only person who can answer this question is your parents' tax professional. While I applaud your taking the time to read the IRS website, the information you cite may not apply in your parents' unique situation. A good CPA should be able to properly guide you in this matter.

Trevor Curran
NMLS #40140

If you thought my answer was helpful, please give me a "Thumbs Up" or "Best Answer." Thanks!
0 votes Thank Flag Link Mon Apr 8, 2013
You should contact your accountant or a real estate attorney. If you don't have one you trust I can recommend several that may give you a quick answer to this question.

Feel free to email or call/txt me. 917-294-0356 or Sharonandkaren@kw.com

Good luck with your purchase!

Karen Abramson
Keller Williams Suburban Realty
0 votes Thank Flag Link Mon Apr 8, 2013
Each parent can gift each child/person up to 13k each so that could potentially cover $52k. However, that doesn't always mean, they have to PAY tax just that they have to file with IRS over that amount. Talk to an accountant about the 1 million dollar 'unified' lifetime tax credit which comes under the estate tax laws. It could help you out in this case. I'm a realtor not a tax attorney but I hope I have been of help here. If you need help in your real estate needs, I'm here to help. Good luck.
Sandra Bolcar, Broker Associate
0 votes Thank Flag Link Mon Apr 8, 2013
Hi Olimits7,

You need to talk to a Tax Accountant/CPA. I think (but am not sure - that is why you need to talk to a CPA since they know tax laws) $13,000 is exempt from the gift tax (per year). If that's the case, they could be liable for gift tax on the additional $87,000. Again, consult a CPA.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Mon Apr 8, 2013
You should ask an accountant. Most people here are Realtors and Loan Officers. Though I would say that they already paid taxes on that money, I don't see why they'd have to be taxes again. If anything, you MIGHT be the one to have to pay. Again, not within my area of expertise, speak to an accountant.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648
0 votes Thank Flag Link Mon Apr 8, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer