Can my mother gift me and my wife each $12,000 for a total of $24,000 towards the purchase of a new home and then can my wife and I each give my mother a gift of $12,000 later for a total of $24,000 to "pay her back"?
2007-11-13 14:04:44 · 3 answers · asked by bravesfan75 1 in Business & Finance ➔ Personal Finance
Yes, your mother can give you and your wife 12,000 each (the current IRS limit) without either of you having to pay gift tax.
And yes, you could always give her a gift later on to "pay her back", although that really isn't what you are doing from a US tax perspective. You would just be making her a gift (wink, wink).
2007-11-13 14:50:51 · answer #1 · answered by The Professor 5 · 0⤊ 0⤋
Technically a gift is not earned. You don't pay back a gift. If it's a loan or other type of help, then you can pay her back. You can have a this for that arrangement where you owe her, but it's not the same as a loan. Another way to put it is if she scratches your back, then you'll scratch hers.
You don't pay back gifts. Nothing wrong with help from others.
2007-11-13 14:14:36 · answer #2 · answered by Jack 7 · 0⤊ 0⤋
Unless you tell the home loan provider this they will be none the wiser. Just say it's a gift & in a few years re-draw on the home loan to pay your mother back.
2007-11-14 21:56:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋