2007-12-31 12:24:10 · 7 answers · asked by Pepe 1 in Business & Finance ➔ Taxes ➔ United States
So if my grandmother gives me the money, say tomorrow, and take the money to my bank and deposit the money (since I need to show it for loan processing), is the bank going to say anything?
2007-12-31 12:37:01 · update #1
The $50,000 is for the down payment
2007-12-31 12:40:11 · update #2
If my grandmother gives me the $50,000 in cash or in a cashier's check, is the bank going to say anything?
2008-01-01 08:15:28 · update #3
no.
2007-12-31 15:26:48 · answer #1 · answered by viajero_intergalactico 6 · 0⤊ 0⤋
gifts are never taxable to the recipient. Bostonia gave you the rest of the details and pitfalls
2007-12-31 23:50:59 · answer #2 · answered by RANDALL M 3 · 0⤊ 0⤋
No, you don't pay tax on a gift that you receive.
2007-12-31 20:43:40 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
I just want to know where can you get a house for $50,000 from in the US. Not in New York for sure. A yes you do not have to pay taxes its a gift.
2007-12-31 20:37:17 · answer #4 · answered by Cata 3 · 0⤊ 0⤋
No, gifts are never taxable to the recipient.
The US does have a Gift Tax however it's levied on the donor of the gift. If your grandmother is not a US citizen or resident, she cannot be compelled to file a US Gift Tax return, nor pay the US Gift Tax.
And since the gift is less than $100,000, there are no reporting requirements for you to worry about, either.
You and your Abuela have officially gotten one over on the system! Enjoy her generous gift, and make sure you give her a big hug the next time you see her.
Addendum: No the bank isn't going to give you any hassles.
Where you may run into some issues is with the mortgage lender. Most loan programs require "seasoned" funds, meaning that you must show that you have had the money in your possession for at least 3 months. That's why they ask for 3 months worth of bank statements on most mortgage loan applications.
If you are just about ready to close right now, the lender is going to require a gift letter from your Abuela. Basically it will have to confirm that the money that she gave you is a gift and she has no expectation of it ever being returned to her. If the letter isn't in English you'll probably have to get a certified translation from a translator acceptable to the lender. Since the letter is coming from outside of the US, it would be a good idea that she provided a certified copy of the identification page of her Mexican passport as well.
If you are just starting your home search now, hold off a bit to make sure that you can provide 3 months worth of bank statements all showing the $50,000 as being continuously on deposit in the account. At that point, the gift letter will no longer be required.
Note to Cata: You can still find a liveable $50,000 home in many parts of the country. Try Joplin, MO for example. It won't be a palace, but it will be liveable! My $117k home would have cost me half a million back in Boston; that's why I settled here!
Note to Troll: Thanks for the thumbs down. I needed that! ;)
2007-12-31 20:28:37 · answer #5 · answered by Bostonian In MO 7 · 7⤊ 1⤋
Bostonia gave you good answers. I would add that if it is cash (currency) the bank must report it to the IRS.
Jim Kirby, CPA/PFS, CFP, CFS
2008-01-01 11:51:39 · answer #6 · answered by Jim Kirby, CPA/PFS, CFP, CFS 3 · 0⤊ 0⤋
Gifts received by you are not taxable.
2008-01-01 13:30:19 · answer #7 · answered by MrMojo1 5 · 0⤊ 0⤋