Posted on: 09th Jun, 2010 08:51 am
Hi all,
I am planning to borrow money from my father-in-law to help us with the downpayment and closing. I read all about the gift letter etc on this forum. He is transferring the money to my account. Now, is it necessary to disclose this as a gift? What is the downside of telling the lender that this is my own money?
thanks,
I am planning to borrow money from my father-in-law to help us with the downpayment and closing. I read all about the gift letter etc on this forum. He is transferring the money to my account. Now, is it necessary to disclose this as a gift? What is the downside of telling the lender that this is my own money?
thanks,
Hi Sripal,
As per my knowledge there is no downside of telling the lender. All you need to do tell your father-in-law to sign a letter stating everything which will be considered as the gift letter and deposit the money to your account.
Hope this will help.
As per my knowledge there is no downside of telling the lender. All you need to do tell your father-in-law to sign a letter stating everything which will be considered as the gift letter and deposit the money to your account.
Hope this will help.
Thanks Rita. So why do people go through the trouble of getting a gift letter, specially if it is within family and both sides agree to just transfer the money. Are there tax implications if we do not show that as a gift?
Hi Sripal,
Yes, there will be tax implications in both cases. The best thing I would suggest you is to consult with a good attorney to know detailed information.
Yes, there will be tax implications in both cases. The best thing I would suggest you is to consult with a good attorney to know detailed information.