We are going to be buying a house and my grandmother is giving us $30,000 cash towards the house for a down payment. Is there a way to avoid a gift tax? She actually found the money at her deceased sisters home, and has not put it into her bank account. Whats the best way to handle this?
2007-12-04 01:18:45 · 3 answers · asked by ? 1 in Business & Finance ➔ Renting & Real Estate
Talk to a tax accountant.
Hell, she might have to pay tax on it, then you, might end up being close to zero left.
2007-12-04 01:40:36 · answer #1 · answered by Anonymous · 0⤊ 2⤋
12K each each year. Have her give each of you some this year and some next year. When you keep the gifts under 12K per year she doesn't need to file a gift tax return. A gift tax return isn't so bad there may be not tax because she may be under the lifetime limit but she would need to file a return. Have her put it in a bank account and write you each a check dated december that you deposit in december then another Jan check you deposit in Jan. Keep copies to show the mortgage company where the money came from.
2007-12-04 01:59:31 · answer #2 · answered by shipwreck 7 · 0⤊ 0⤋
I've never seen anyone pay a gift tax on money that was given to them as a down payment on property.
Ever.
2007-12-04 04:06:42 · answer #3 · answered by Expert8675309 7 · 0⤊ 0⤋