Posted on: 05th Jan, 2010 09:05 am
Hello,
I was wondering if anyone can help. Been searching through the forums a bit, and couldn't find the exact answer. My situation
Purchasing a 425K property with my father. (both on title)
My father will be putting 225K down, and I will be getting a 200K mortgage.
The lender, however, wants the 225K to be a Gift to me (w/ gift letter) to satisfy their underwriters. Is this normal, and will this be invoking a big tax? Any help would be great. Is this just a common thing?
Thanks!
CM
I was wondering if anyone can help. Been searching through the forums a bit, and couldn't find the exact answer. My situation
Purchasing a 425K property with my father. (both on title)
My father will be putting 225K down, and I will be getting a 200K mortgage.
The lender, however, wants the 225K to be a Gift to me (w/ gift letter) to satisfy their underwriters. Is this normal, and will this be invoking a big tax? Any help would be great. Is this just a common thing?
Thanks!
CM
you and your father are joint applicants? assuming that, then the insistence that the $225K be a gift is stoooooopid to say the least. what kind of lender is this?
if he is purely a co-signer and not going to occupy the premises and is only guaranteeing the loan, in essence, then what they're requesting is sensible, and you'll need to comply.
if he is purely a co-signer and not going to occupy the premises and is only guaranteeing the loan, in essence, then what they're requesting is sensible, and you'll need to comply.
George hit it on the nail!
great reply thank you.
Yes, my father won't be in the apartment most of the time, so its basically going to be my dwelling.
So, with all that on the table, is there a tax that comes into play for the $225K "gift" on my part / my father part?
Is there something in the law that says unless it surpasses $2MM its not taxable.
Thanks in advance!@
Yes, my father won't be in the apartment most of the time, so its basically going to be my dwelling.
So, with all that on the table, is there a tax that comes into play for the $225K "gift" on my part / my father part?
Is there something in the law that says unless it surpasses $2MM its not taxable.
Thanks in advance!@
check with the irs or with a tax advisor - i claim no special expertise in those matters, other than knowing to whom you should address your question.