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?

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?

posted

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.

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-tax...