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Old 03-20-2017, 07:38 PM
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Join Date: Mar 2017
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Form 709

Hello;

New here to the forums, sorry if I'm posting in the wrong section.

Got a question on filling out form 709 correctly.

My parents are selling their house to me. I am putting down some initial $$$ and we are setting up a self-done loan/mortgage. This is all legal based on the IRS AFR rules.

Ok so the rub is my parents will "gift" a portion of the equity back to me so the loan can be less.
The gift will be over the $14,000/year ($28,000 joint), so it shouldn't be taxed as it is added to that life time exclusion limit of $5 million.

We just want to dot the I's, and cross the T's correctly and have that form filled out correctly.

Any help would be appreciated.
Thanks in advance. Steve



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Old 03-21-2017, 07:25 PM
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Join Date: Oct 2010
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Quote:
Originally Posted by taxy12 View Post

Ok so the rub is my parents will "gift" a portion of the equity back to me so the loan can be less.
The gift will be over the $14,000/year ($28,000 joint), so it shouldn't be taxed as it is added to that life time exclusion limit of $5 million.

We just want to dot the I's, and cross the T's correctly and have that form filled out correctly.
No howver your parents neeed to file form 709 with the IRS since the gifts?d be over $28K for joint. Everyone has a lifetime exemption from gift and estate tax of $5.45 million for 2016 and even after you use up your $14k annual exclusion and any other provisions that apply, any remaining gift amount applies against your lifetime exemption amount.



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