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G1T
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Re: Gift taxg

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Thank you for the reply and the info. You have been very helpful. 

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Valued Social Butterfly
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Re: Gift tax

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There really isn't a gift tax paid while the donor is still living - you just file an informational return on the gifts and then if your estate is over 5.6 million, all the gifts get added back in.

 

IRS Publication 559 gives the details.  And here is a recent Forbes Finance article on it 

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...

 

To keep down the reporting you could break it up more and give them some of the money in another year but since it is for the DP on the house, it really isn't a big deal.  However since it is for this purpose, they will have to disclose the amount of the gift for the DP to their lending institution.  This may make a small difference in the amount of interest rate for which they may qualify for since it is a gift as opposed to their own money.  Still no big deal.

 

 

* * * * It's Always Something . . . Roseanne Roseannadanna
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G1T
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Gift tax

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I hope I’m posting this in the right forum, and I hope someone can answer my question. I am a widow and retired. My daughter and her husband are buying a house, and I am giving them $37,000 for a down payment. Now someone is telling me I’ll have to pay a gift tax on anything over $15,000. Apparently I can give $15,000 to my daughter and $15,000 to my son-in-law, but there’s still $7,000.  Is there a way to get around paying a tax on that? It seems ridiculous to have to pay a tax just because I want to help my kids. Any suggestions?

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