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300k gift from parents for a new home
Hello,
I am very blessed and grateful to have my parents offering to give me 300k to build my forever home. I own the property and don't intend on moving. I know my parents will need to file a 709 form because they are gifting me over the 15k limit in a given year. I had two questions:
1) Do they have to pay taxes on this now or is it paid once the lifetime annual limit is exceeded? ( We'll never hit that).
2) Can they just write me a check for this amount without any issues at the bank? I know anything over 10k is reported.
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300k gift from parents for a new home
@itserine wrote:1) Do they have to pay taxes on this now or is it paid once the lifetime annual limit is exceeded? ( We'll never hit that).
Only once the lifetime exclusion is exceeded will any tax be due.
@itserine wrote:2) Can they just write me a check for this amount without any issues at the bank?
They can simply write you a check but the bank may want some sort of "source of funds" information (e.g., gift letter, bank/brokerage statements, etc). You will have to inquire as to what, exactly, your lender will require.
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300k gift from parents for a new home
Thank you so much for the reply. Now, if part of that is in cash. Does that change anything with making a cash deposit to me? For instance 100k check 200k cash.
Do those funds have to be in my account for a certain amount of time before they are considered usable for a home builder?
Don't ask why they want to keep large amounts of cash at home, they're old school. I keep telling them its losing money family with inflation.
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300k gift from parents for a new home
A gift is a gift regardless of the form (i.e., whether it is a check or cash or intangible or tangible property).
Whether the builder wants to accept currency as payment is up to the builder.
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