Posted on: 21st Oct, 2009 11:35 am
Question:
1. Do you know what the gift amount is per year! 13,000, Married couple 23,000.00 per year?
2. If a family member puts money into escrow and does not go on title. Does that create tax implications for the buyers. How can we avoid tax implication to the buyer or gifter?
3. Because the family member gifting can easily just go on title?
or, write up a loan with a balloon payment due in 5 years?
4. This is just your opinion not legal advise?
1. Do you know what the gift amount is per year! 13,000, Married couple 23,000.00 per year?
2. If a family member puts money into escrow and does not go on title. Does that create tax implications for the buyers. How can we avoid tax implication to the buyer or gifter?
3. Because the family member gifting can easily just go on title?
or, write up a loan with a balloon payment due in 5 years?
4. This is just your opinion not legal advise?
Sate is Californis
Hi,
The annual gift tax exemption for the year 2009 is $13,000 for a single person and $26000 for a married couple. If the family member is gifting the money to the buyers, there should not be any tax implications on either the family member or the buyer. One can also claim a lifetime gift tax exemption of $1million. Thus if the gift amount exceeds the annual gift tax exemption, the excess amount can be adjusted with the lifetime exemption. It is not necessary for the donor to be on the title to the property. However, to know more on this you can call the IRS or discuss this with a tax consultant.
The annual gift tax exemption for the year 2009 is $13,000 for a single person and $26000 for a married couple. If the family member is gifting the money to the buyers, there should not be any tax implications on either the family member or the buyer. One can also claim a lifetime gift tax exemption of $1million. Thus if the gift amount exceeds the annual gift tax exemption, the excess amount can be adjusted with the lifetime exemption. It is not necessary for the donor to be on the title to the property. However, to know more on this you can call the IRS or discuss this with a tax consultant.
good info savior!