Posted on: 28th Jun, 2010 08:55 pm
My brother has $200k cash on hand from a previous job in the US--sitting in a checking account. He has been working outside the US for a non-US firm for the last four years. He is interested in gifting the $200k as a down payment for my first home purchase, and as a way to help grow his money. Will I be able to pay him back if this is a gift? if not, would you recommend we use a TIC ownership structure instead so that he can get his original amount plus the added value of the home if I sell the home in 5-7 years?
Hi l_hwang!
Welcome to forums!
If the down payment is a gifted amount, then you won't have to pay it back to your brother. While your brother gifts you the money, he needs to provide you with a gift letter which you'll have to submit to the lender.
As far as the ownership is concerned, you can go for tenancy in common. This will help your brother to have equal ownership in your property. Thus, when you sell off the property, he will be able to claim a portion of the sale proceeds.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the down payment is a gifted amount, then you won't have to pay it back to your brother. While your brother gifts you the money, he needs to provide you with a gift letter which you'll have to submit to the lender.
As far as the ownership is concerned, you can go for tenancy in common. This will help your brother to have equal ownership in your property. Thus, when you sell off the property, he will be able to claim a portion of the sale proceeds.
Feel free to ask if you've further queries.
Sussane
He can give you a gift of $13,000 a year without being subject to a gift tax, so, to gift you $200,000 may cause a gift tax liability.
He can be on title and then he is protected as far as being an owner and as a buyer he is not gifting the money, he is one of the buyers providng a down payment. Seems being an onwer/buyer works out best all the way around.
He can be on title and then he is protected as far as being an owner and as a buyer he is not gifting the money, he is one of the buyers providng a down payment. Seems being an onwer/buyer works out best all the way around.
