Gift Tax Limits And The Purchase Of A Home
Written by Admin on October 8, 2009.
Summary: Gift Tax Limits And The Purchase Of A Home
If you are a parent and want to assist you child in the purchase of a home, you may want to give your kid a gift. But if that gift consists in the entire value of the home, you may have gift tax limits and federal gift tax consequences to deal with.
While you should still be able to give the gift and will have gift tax consequences, you child will still be able to purchase a home with your gift.
Gift Tax Limits And The Purchase Of A Home
Q: I am in the process of purchasing a town house and paying cash. I am using funds from a certificate of deposit (CD) that is payable on death (POD) to my daughter. She is currently renting an apartment and I feel it would be better for her to own rather than rent. The home will be in her name. Are there tax implications in this transaction for me or for my daughter?
A: You can give anyone a gift of up to $13,000 per year without triggering a taxable event.