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.
@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.
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.