My fiance and I are in the process of buying a home. We wanted to use money from a trust that she has for a down payment. The loan officer suggested that she gift me the money and we provide gift letters, bank statements showing the withdrawal/deposit, etc.

One of the things we plan on doing before we get married in June is to open up a joint bank account together. Thankfully, we have the opportunity to put down $100,000 on the house. We put down $25k when we signed the contract. The loan officer estimated that we're going to have to put down an additional $97k at closing to cover the rest of our down payment, closing costs and all the prepaid items, blah blah blah...

Finally, here's my question... if she gifts "us" the money to our newly opened joint bank account, will we have to pay taxes on it? Additionally, if she just gifted me the money, will I have to pay taxes on it? The loan officer doesn't seem to think so because the money is for a house. I tried emailing my accountant but he seems to disappear as soon as the tax season is over.

Her name isn't on the mortgage but it will be on the deed to the house, which is why we're in this situation.

Thanks in advance
Dan

One of the things we plan on doing before we get married in June is to open up a joint bank account together. Thankfully, we have the opportunity to put down $100,000 on the house. We put down $25k when we signed the contract. The loan officer estimated that we're going to have to put down an additional $97k at closing to cover the rest of our down payment, closing costs and all the prepaid items, blah blah blah...

Finally, here's my question... if she gifts "us" the money to our newly opened joint bank account, will we have to pay taxes on it?==========>>>>>>>>>NO;however, the donor, in this case your fiancé, needs to file irs form 709 which is an info return NOT tax return aslongas the total value of all gifts made to you within the same calendar year exceeds $14K; If the one time/ cumulative gift is less than $ 5.43Million, it’s a paperwork issue. If an asset is left to a spouse the tax usually does not apply. So, up to $5.43M for estates of persons dying in 2015 can be given by an individual, before and/or upon their death, without incurring federal gift.

Additionally, if she just gifted me the money, will I have to pay taxes on it? The loan officer doesn't seem to think so because the money is for a house. I tried emailing my accountant but he seems to disappear as soon as the tax season is over.==============>>>>>>>>>>Not because the money is for a house but it is a gift less than $5.43 M for 2015.

Her name isn't on the mortgage but it will be on the deed to the house, which is why we're in this situation.====>>>>>>>Whether her name ‘d be on the mortgage , has nothing to do with the form 709; as said, UNLESSS the gift is LESS than $14K for 2015, she , as a donor, MUST file form 709 with the IRS since the amount of the gift exceeds $14K , annual gift tax exemption amount of $14K.

Thank you very much for that extremely thorough answer. That definitely answered my question!