If I take a cash disbursement from my IRA, and give that money to my son to buy a house, do I still pay the full income tax on that money?
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Yes. The tax applies reguardless of what you do with the money.
If you are under age 59 1/2 then there could be an additional 10% early distribution penalty that might be waived for the first $10,000 if the money is used to purchase a first home and all of the other conditions are met.
This assumes you are asking about a Traditional IRA and not a Roth. For a Roth, you can always withdrew your own prion contribution tax and penalty free. The tax and penalty applies to any earnings that are withdrawn.
do I still pay the full income tax on that money? YES.
Even if you were using the IRA distribution for your own house the distribution is taxable.
GIFTS
Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return. Money that you gave as a gift to someone else is not deductible for your taxes.
Turbo Tax does not support the gift tax form 709, but here is a link:
https://www.irs.gov/pub/irs-pdf/f709.pdf
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
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