Home Buying in Smithtown>Question Details

Walt Green, Renter in West Islip, NY

anyone know what the tax ramifications are, of a gift to a home buyer?

Asked by Walt Green, West Islip, NY Wed Jun 6, 2012

someone I know is giving us a sizable gift to make the down payment (20-30%, depending upon the home). are their tax ramifications there?

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2
Martina Ryan’s answer
According to the IRS, monetary gifts that exceed an exclusion of $13,000 may be subject to the gift tax. If a gift you receive is less than this amount, it will not be subject to the gift tax. Check on the IRS website for more updated information on this. Your friend may be better off getting smaller amounts from more people.
1 vote Thank Flag Link Thu Jun 7, 2012
gift tax is paid by the giver. (I found this out after I asked the question). so, as far as the home buyer's taxes, it's irrelevant. all that's needed is a "gift letter" at the closing, from the giver, so as to prove to the bank it's not a loan. :-)
Flag Thu Jun 7, 2012
Don't simply rely on online information, when it comes to any tax issues, it's really in your best interest to consult with your tax professional....
1 vote Thank Flag Link Wed Jun 6, 2012
oh, I certainly will. I was just looking for a ballpark, general idea. :)
Flag Wed Jun 6, 2012
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