cash gift to a friend for buying house

[taxmoney101]

Hi there,

My friend is planning to buy a house, but for his down payment he would need help. Can I give him the cash as a gift for the down payment without any tax consequence?

Thanks

Raj

[xmasbaby0]

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($17,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.    In 2024 that yearly limit will increase to $18,000.

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

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

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

[JohnB5677]

Yes, you can give your friend a gift of up to $18,000 in 2024 with no tax consequence.  

• This is a gift from one individual to another individual.  
• You can make similar gifts to multiple individuals. 
• A gift is reported on IRS Form 709.
• TurboTax does not support Form 709.
• The Form 709 is not included with a federal tax return. It has to be mailed separately and to a different address.
• There is also a lifetime exemption of $13.61. million.

Please see this article on Frequently Asked Questions on Gift Taxes  als0 the TurboTax article The Gift Tax Made Simple