topic My mother will be selling her home and expects to receive about $90k. She wants to give me the funds as a gift for MY new home. Do either of us have to pay any taxes? in Deductions & credits

My mother will be selling her home and expects to receive about $90k. She wants to give me the funds as a gift for MY new home. Do either of us have to pay any taxes?

xprmarinesx787 — Mon, 01 Jul 2019 19:25:14 GMT

Re: My mother will be selling her home and expects to receive about $90k. She wants to give me the funds as a gift for MY new home. Do either of us have to pay any taxes?

Bsch4477 — Mon, 01 Jul 2019 19:43:09 GMT

You owe no tax on the gift. She pays no tax for giving the gift but files Form 709 since the amount is greater than the allowed $15,000 gift exemption. I assume her profit on the sale is eligible for the exemption from capital gains tax.

Re: My mother will be selling her home and expects to receive about $90k. She wants to give me the funds as a gift for MY new home. Do either of us have to pay any taxes?

Anonymous_ — Mon, 01 Jul 2019 19:50:06 GMT

If the home is your mother's main home, she will probably qualify for the Section 121 exclusion (up to $250,000 of that gain, or $500,000 if she is filing a joint return with her spouse).

See https://www.irs.gov/taxtopics/tc701

Although your mother, as the donor of the gift of $90k, will probably not owe any gift tax, she will have to file a gift tax return since the amount exceeds the annual gift tax exclusion of $15k for the 2019 tax year. You, as the donee, will have no tax liability whatsoever on the gift.

See https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes