Level 7

Other tax discussions

HI - 

 

What a great gift!  Your son is fine as he sold a gift that was given to him.  The question is more around the gift.  If the $20,000 came from 2 people then it falls under the gift tax limit, but if the gift was just from 1 person that person will need to simply fill out form 709  https://www.irs.gov/pub/irs-pdf/f709.pdf 

 

I hope that this is helpful.