Will I have to pay taxes on gift money used as a d...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
dsbw31481
New Member

Will I have to pay taxes on gift money used as a downpayment on a second home?

I am buying a second home, and the 20% down payment is being made with gift money. Will i be taxed on that gift money?
3 Replies
Hal_Al
Level 15

Will I have to pay taxes on gift money used as a downpayment on a second home?

No.  The receipt of a gift is neither taxable or even reportable.

 

You may have heard of the "gift tax".  It is reported by the giver of the gift, not the recipient, for gifts of $15K or more ($30K if given to or from a married couple). "Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...

dsbw31481
New Member

Will I have to pay taxes on gift money used as a downpayment on a second home?

Wow, thanks for the help! So if I’m reading this right, as long as it’s under the $11.58 million, neither party pays taxes on it?

 

This sets me at ease. Thank you again, @Hal 

Hal_Al
Level 15

Will I have to pay taxes on gift money used as a downpayment on a second home?

Q. As long as it’s under the $11.58 million, neither party pays taxes on it?

A.  That's correct.

Dynamic AdsDynamic Ads
v
Privacy Settings