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Old 02-04-2014, 11:04 AM
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Tax Implications from Parents Gift to Purchase Property

My parents want to take money from their estate to help me purchase a commercial property for my business. The money would be written up as a loan against my future inheritance.

Are there tax implications to them or to me? I live in Florida, they live in New York.



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Old 02-04-2014, 01:06 PM
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Originally Posted by keifay View Post

Are there tax implications to them or to me? I live in Florida, they live in New York.

From their estate??? Very few Americans need to worry about federal estate tax or the federal gift tax. For deaths in 2014, the individual exemption is $5.34 million. Married couples can together leave up to twice that amount free of federal estate tax. Gifts from directly from deceased’s estate is not taxable to you , a done; however, the estate needs to file form 709 and needs to add it to its gross estate.UNLESS it is a gift loan that you need topay back to them, they do not need to establish average federal rate for the funds.Aslongas the gift is given from their trust, then if the amount of the gift exceeds $14K (or $28K if they choose gift splitting; $28K is not added to their taxable gross estate), then they must have the trustee of the trust file a gift-tax return, IRS Form 709.However, unless the amount of gift exceeds $5.34 M for 2014, they do not have to pay tax on it but the amount is included in their taxable gross estate later.



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