Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-04-2013, 10:09 AM
Junior Member
 
Join Date: Jun 2013
Posts: 1
Tax on Gift from parents

So my wife and I are purchasing a home. Each of our parents have provided an amount over 13,000 to help us with out down payment. We have provided a gift letter to the bank that is required when receiving money from family. The loan officer, financial advisor, nor attorney never mentioned anything regarding tax penalties that may incur to either our parents or us.

Should we be worried about this? What is the rule regarding monetary gifts for this purpose?

Thank you in advance for your help!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 06-04-2013, 03:15 PM
Moderator
 
Join Date: Oct 2010
Posts: 4,892
Quote:
Originally Posted by thmpr52 View Post
So my wife and I are purchasing a home. Each of our parents have provided an amount over 13,000 to help us with out down payment. We have provided a gift letter to the bank that is required when receiving money from family. The loan officer, financial advisor, nor attorney never mentioned anything regarding tax penalties that may incur to either our parents or us.

Should we be worried about this? What is the rule regarding monetary gifts for this purpose?

Thank you in advance for your help!
As long as it is purely a gift for you ands your spouse, you , as donees, do not need to pay tax on the gift of $13K and your parents do not need to file form 709 since $13K doesn’t exceed the annual gift tax exclusion of $13K for 2012 and $14K for 2014(UNLESS they elect gift splitting as they live in a non-community pty state and in this particular situation, they do not need to elect gift splitting).Even if it is a gift loan and even if no any interest is imputed on the gift loan of$13K( OR $100K or less) if your, as borrowers, net investment income(i..e, interest, dividend or capital gain or etc) for the year doesn’t exceed $1K.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Six Facts for Adoptive Parents Samatg Tax Credit 0 03-14-2012 11:09 AM
Is rent paid to parents from disabled child's ssi money considered income for the parents? troutmaster Rental Real-Estate 3 02-08-2011 12:59 AM
Ten Tax Benefits for Parents Samatg For 2010 0 02-07-2011 03:22 PM
Filing between Parents Motherontheloose1 Filing Requirements 0 02-19-2009 03:11 PM
Amount Given to Parents masres Miscellaneous 1 11-04-2008 09:55 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning