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rudynanna
New Member

Im receiving 45000.00 towards the purchase of my primary residence. Is it better transfer the money to escrow?

Am I taxed on funds being used for my purchase?
1 Best answer

Accepted Solutions
rjs
Level 15
Level 15

Im receiving 45000.00 towards the purchase of my primary residence. Is it better transfer the money to escrow?

Based on the comment that you posted, the $45,000 is a gift from your father. A gift is not taxable income to you, and you do not report it on your tax return. Your father has to file a gift tax return to report the gift. He will not have to pay any gift tax unless the total of all gifts he has given in his lifetime is more than $11,180,000, but he has to file the return.

Post more details if it is not an outright gift, or if there are strings attached to the gift, or if your father expects you to repay it, or if your father will be a part owner of the house.

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4 Replies
rjs
Level 15
Level 15

Im receiving 45000.00 towards the purchase of my primary residence. Is it better transfer the money to escrow?

Where are you getting the $45,000 from? There is no tax on money that you use to buy a home. But money that you receive might be taxable income, depending on why you are receiving it and from whom you are receiving it.
rudynanna
New Member

Im receiving 45000.00 towards the purchase of my primary residence. Is it better transfer the money to escrow?

It is given to me from my Father. I am using it strictly towards my down payment.
rjs
Level 15
Level 15

Im receiving 45000.00 towards the purchase of my primary residence. Is it better transfer the money to escrow?

Based on the comment that you posted, the $45,000 is a gift from your father. A gift is not taxable income to you, and you do not report it on your tax return. Your father has to file a gift tax return to report the gift. He will not have to pay any gift tax unless the total of all gifts he has given in his lifetime is more than $11,180,000, but he has to file the return.

Post more details if it is not an outright gift, or if there are strings attached to the gift, or if your father expects you to repay it, or if your father will be a part owner of the house.

View solution in original post

Anonymous
Not applicable

Im receiving 45000.00 towards the purchase of my primary residence. Is it better transfer the money to escrow?

whether the money is held in escrow or not, any income earned is taxable to you.

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