Re: Does it count as gift if Mom helps with down payment and she is on the deed?

Does it count as gift if Mom helps with down payment and she is on the deed?

Hello,

I know there is a limit of $15,000 per year before you have to report the Gift Tax in a tax return. I am in a situation where my mom is on the deed of our new house (joint tenancy with right of survivorship), however I took the mortgage alone. Question #1: does it count as a gift to her from me by putting her name on the title? Question#2: if she helps me pay for half of the down payment and monthly mortgage, will that cancel out my gift to her? Do I still need to report to the IRS if she puts in more than $15,000 in the house?

Thanks in advance!

posted

Since both of your names are on the property then you are co-owners, and this is not a gift. (Situation would be different if she gave you money and the house was in your name only.) Keep a record in your files for the amount of money that each of you has invested in the property in case you might need a basis when you sell the property.