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GIFT TAX

Posted on: 11th Jun, 2009 06:00 pm
My parent give me money for a downpayment on a house.... What are the tax affect of the money ( more than $10,000)? If my parent lend me the money for a downpayment for a house.. what are the tax affect of the money?
Hi Guest,

If your parents have given the money as a gift to you, then they may have to pay gift taxes on it. However, if they have given you the money as a loan, then I don't think you'll have to pay any kind of taxes on it.

Thanks
Posted on: 11th Jun, 2009 07:43 pm
Guest,

If your parents lend you the money and you pay interest on it, then your parents will end up paying taxes on the interest.

Good luck and feel free to ask
Posted on: 11th Jun, 2009 08:04 pm
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