turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cash gift to a friend for buying house

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

 

 

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

cash gift to a friend for buying house

 

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
JohnB5677
Expert Alumni

cash gift to a friend for buying house

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

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies