| Lilja |
09-18-2018 12:19 AM |
Quote:
Originally Posted by Chula Vista
(Post 1997752)
Which goes to the $45K. Sherri and Scott are in escrow on their first home. They put a ton of money down from their savings. They wanted to put another $100K down but the rest of their savings are pure cash and not in an FDIC bank. So we came up with a plan.
Federal law allows you to gift a maximum of $15K a year to family members. So Linda and I each gave Sherri, Scott, and the new grandkid the max for a total of $90K as a gift towards their home purchase. This will save them about $600 a month on their mortgage payments.
|
You do realize that there is a total lifetime gift tax exemption of of $11.18 million beginning in 2018? In other words, you could give 2 million to just your daughter today and it would count towards your lifetime exemption. As long as your total estate is less than 11.18 million, you are in the clear (but if it was say, 12 million, than you would have taxes drawn on the amount over 11.18). I can get into more specifics if you like.
But, if you are giving them a gift to a person, and specifically state, as you did here, that it is for a house, then it is no longer a gift and you can be taxed because it is not a gift. A gfft would be more something like, say you gave a set amount to a person and they bought a car. You didn't tell them what to do with the money or talked about how it was to be used, you just gave it to them because you value them. So, I would take that bit out of your statements in the future unless you want the IRS knocking at the door. Or if you are tipped off to the IRS by someone. Just a bid of advice (and yes, I do know alot about American tax law. But gift laws work the same in several countries ). Just some advice. Take it as you want. |
