Gift question

I gifted my daughter $50,000 for a down payment on a house. My son financed the house ( we did it this way because of my age and her credit rating). What the best way to handle this on my taxes? $25,000 to each child? Thanks, Gary

234

Expert Alumni

Nov 16, 2022 10:23:34 AM

Hi @Nowall3

That is very generous of you to gift your daughter so much for a down payment.

How much can a parent gift for down payment?

For parents, making a down payment gift represents one of many ways to transfer wealth, often with fewer tax implications. For tax year 2022, you and a spouse can each gift your child up to $16,000, for a total of $32,000, without triggering the gift tax

IRS Link

As far as how you should split the gift, you have to consider who the gift is really to in order to avoid possible penalties or an audit. If you gifted the full amount to your daughter to purchase a house and your son did not actual receive any gift, then you should report it as such.

As far as you having to pay taxes will depend on your lifetime gift exclusion.
Info on this can be found HERE

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Gift question