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dbm5510
New Member

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

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ThomasM
New Member

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

No, it's the giver who is subject to any gift tax, not the person who receives the gift.  But a giver is allowed a lifetime exemption of (currently) $5.45 million without being subject to the tax.

If the gift is greater than $14,000 in a year, then he will have to file an IRS Form 709, US Gift Tax Return, for the year in which he makes the gift.  The form doesn't trigger a tax; it simply documents the amount given in a particular year, for (eventual) calculation of the lifetime total.

So you won't pay tax on the gift, but remind your father-in-law that he will need to file the Form 709 for the year he actually makes the gift to you.

Here's some further reading on the gift tax:  https://www.irs.gov/pub/irs-prior/p950--2006.pdf.

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4 Replies
ThomasM
New Member

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

No, it's the giver who is subject to any gift tax, not the person who receives the gift.  But a giver is allowed a lifetime exemption of (currently) $5.45 million without being subject to the tax.

If the gift is greater than $14,000 in a year, then he will have to file an IRS Form 709, US Gift Tax Return, for the year in which he makes the gift.  The form doesn't trigger a tax; it simply documents the amount given in a particular year, for (eventual) calculation of the lifetime total.

So you won't pay tax on the gift, but remind your father-in-law that he will need to file the Form 709 for the year he actually makes the gift to you.

Here's some further reading on the gift tax:  https://www.irs.gov/pub/irs-prior/p950--2006.pdf.

dbm5510
New Member

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

Thank you very much for your quick response.  Will we have to pay Income Tax on it?
ThomasM
New Member

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

No.  Your father-in-law must file the Form 709, however.
dbm5510
New Member

My father-in-law (91) lives in Fl and wants to sell his home and give us (in NY) 200,000 towards a new home and live with us. Do we have to pay tax on that money?

Awesome!!  Thank you !
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