we are trying to help our son with the downpayment of a home, is it better give it as gift or no interest loan

Question

we live in california and the property is located in Georgia

Answer 1

depends if he is married it can be a gift if he is just moving away a loan

Answer 2

I think the amount you can give a relative tax free is at least $11,000, but check with an accountant before you act. A wife would also be able to accept $11,000 too creating a total of $22,000.

I stopped lending money. It eliminates hard feelings later if the person cannot repay.

If the amount needed is more than the allowable tax free $$$ then create a loan agreement and every year forgive the allowable tax free gift dollars.

Answer 3

It is best to give it as a no interest loan but put the payments in a reserved funds you can give him in a form of a gift on his wedding day or your future grandchild's trust fund. In this way you are able to teach him the value of responsibility at the same time you're able to give a wonderful gift you really don't need the money and you really want it to give it your son as a gift. Either way... you try both in the suggested manner both serving good.

Answer 4

You can give them at the most a tax free 10,000 dollar gift. Any more than that and the government will tax it. But to get around that, you could give them a interest bearing loan(low interest rates) but who says they have to repay it?

Answer 5

The gift does not have to be disclosed like a loan would have to be. You and your spouse can each gift $12,000 tax free to your son for a total of $24,000 each year.

Answer 6

several years ago we bought our 1st home.
my sister in-law was going to loan us our down payment.
but this was by bank standards a loan.
We was told by the bank loan officer to write it as a gift.
A down Payment can't be loaned

Answer 7

Offer as a loan.When and if he needs more he can "borrow" against the loan.If he is paying you back it will make him feel like it's his.