topic Can my mom sell her house, and transfer all the proceeds to me, $300k, (to build her a new house) without being taxed as a gift? in Deductions & credits

Can my mom sell her house, and transfer all the proceeds to me, $300k, (to build her a new house) without being taxed as a gift?

amberdailey2015 — Mon, 01 Mar 2021 21:20:39 GMT

I am trying to avoid paying taxes on the transfer of funds, which would be wired to me at the closing of the sale. I will be using the funds to build her a new home.

Re: Can my mom sell her house, and transfer all the proceeds to me, $300k, (to build her a new ho...

AmyC — Mon, 01 Mar 2021 21:36:12 GMT

Your mom is not giving you the money. She is hiring you to build her a new house, is that correct?

The gift tax has high limits and your mom probably would not pay a gift tax, depending on prior gifts. The lifetime exclusion is over $11 million. If your mom has passed that mark and is giving you the money, then it would be taxable. See About Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

Re: Can my mom sell her house, and transfer all the proceeds to me, $300k, (to build her a new ho...

TomD8 — Mon, 01 Mar 2021 21:57:50 GMT

IRS definition of a gift:

You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return.

https://www.irs.gov/businesses/small-businesses-self-employed/gift-tax#:~:text=You%20make%20a%20gift%20if,may%20be%20making%20a%20gift.