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irenespear08
New Member

Grandma wants to give me $120K for a house. She has not met the $5.45 million lifetime pre-tax limit. What is taxable in this situation?

My grandma wants to give me $120K for a down payment on a house. What is taxable for her as the giver? what is taxable for me as the receiver? Is there an inheritance tax for the state of Texas? 

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xmasbaby0
Level 15

Grandma wants to give me $120K for a house. She has not met the $5.45 million lifetime pre-tax limit. What is taxable in this situation?

You have a very generous Grandma.  Her gift to you is not taxable for you.  Grandma will be exceeding the yearly limit of $14,000 for a gift to you, so she will need to file a gift tax form 709 to report the gift.  She will not have to actually pay tax on the gift unless she exceeds the lifetime gift limit of $5.4 million.  She does have to file the 709 form, though.  That form is not supported by TurboTax, but I will provide a link to it for you.  This is not an "inheritance" since Grandma is still living.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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2 Replies
xmasbaby0
Level 15

Grandma wants to give me $120K for a house. She has not met the $5.45 million lifetime pre-tax limit. What is taxable in this situation?

You have a very generous Grandma.  Her gift to you is not taxable for you.  Grandma will be exceeding the yearly limit of $14,000 for a gift to you, so she will need to file a gift tax form 709 to report the gift.  She will not have to actually pay tax on the gift unless she exceeds the lifetime gift limit of $5.4 million.  She does have to file the 709 form, though.  That form is not supported by TurboTax, but I will provide a link to it for you.  This is not an "inheritance" since Grandma is still living.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
SweetieJean
Level 15

Grandma wants to give me $120K for a house. She has not met the $5.45 million lifetime pre-tax limit. What is taxable in this situation?

However, you can record the $120k as nontaxable income for purposes of the Sales Tax deduction  if you itemize.
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