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man-tax
New Member

In a scenario where a parent helps with the purchase of a home, does the amount paid for the home get taxed for the parent if they are not on the title of the home?

Parent is helping financially to buy home.  Does the amount the parent provide taxable? Does this fall under a gift tax issue if over the exclusion amount? 

3 Replies
ToddL
New Member

In a scenario where a parent helps with the purchase of a home, does the amount paid for the home get taxed for the parent if they are not on the title of the home?

Assistance with purchasing a home won't be taxable income to the parent or to you. 

If it was a gift over the exclusion amount, it should be reported on Form 709, but still won't generate any taxable income at this time.

Depending on the size of the parent's estate, it may never result in any additional tax. 

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

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


man-tax
New Member

In a scenario where a parent helps with the purchase of a home, does the amount paid for the home get taxed for the parent if they are not on the title of the home?

The amount is over the annual exclusion amount of $14k but well below the lifetime exclusion amount.  This will not be a taxable event until it goes over the lifetime exclusion total correct?
ToddL
New Member

In a scenario where a parent helps with the purchase of a home, does the amount paid for the home get taxed for the parent if they are not on the title of the home?

That is correct.
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