is it true that if you put more than a 10000 downpayment on a home that you automatically be audited?

Question

i have saved up 20000 from gifts from my family over the past two years without working and want to pay cash for a 23000 dollar house. will i have to pay taxes on the gifts even though i havent gotten more than 12000 in gifts in one year thanks

Answer 1

Of course not. The IRS has no way of knowing how you got the money. And the person who receives a gift never has to pay taxes no matter how much the gift is. If the giver of the gift gives more than $12,000 per person per year, they need to file a gift tax return, but they have a $1,000,000 lifetime exclusion they can draw against if they exceed the yearly limit.

Answer 2

The recipient of a gift NEVER pays tax on it. It doesn't matter how large the gift is. The donor may have a Gift Tax liability, but that's not your concern.

There's no truth to the rumor that any amount of a down payment will trigger an audit. Living beyond your means might trigger an audit, but a $23,000 home is a shoebox anywhere in the country and won't likely trigger any interest from the IRS.

Answer 3

No, you won't be audited just for putting over $10k down on a house - that's very common to do. Where did you get that idea?

The receiver does not pay tax on gifts - if any tax is due, the giver does, and that doesn't really happen that often.

Answer 4

The first guy's right. Gifts are tax free for quite a sum, per year, per person...but if your buying a $23,000 house...the IRS has bigger fish to fry!

Answer 5

Ha, ha - $10K is nothing. The IRS would be auditing half the homebuyers or more, if that was the case.

Answer 6

I put $60K down and did Not get audited . . . .

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