Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
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
Privacy Settings
v