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Answers (6)
- Paz Bar-am, "pazbaram"
- Contributions:39
It is a question for a full licensed tax professional. I recommend asking him if you can set up a trust and move the house to the new trust to avoid the tax consequence
Let me know what you think,
Paz
- shapiroamg
- Contributions:3058
Better to spend $250 for a CPA consult than have to go running to a CPA later on when the IRS comes knocking on your door.
FWIW, the gift letter for the loan purpose is not shared with any entitty except the lender or investor the lender may sell the loan to.
That's why its best to speak with a CPA tot figure out how to report this.
Im under the impression that the donors are on the hook for the tax. So it just goes to show you its best to ask a tax question to the proper expert. Since the trust is selling you the property, the trust may have some tax issues two that could pass through to the beneficiaries. Does the trust have a tax advisor? Perhaps you could run this past them??
FWIW, the gift letter for the loan purpose is not shared with any entitty except the lender or investor the lender may sell the loan to.
That's why its best to speak with a CPA tot figure out how to report this.
Im under the impression that the donors are on the hook for the tax. So it just goes to show you its best to ask a tax question to the proper expert. Since the trust is selling you the property, the trust may have some tax issues two that could pass through to the beneficiaries. Does the trust have a tax advisor? Perhaps you could run this past them??
- Sandy Kay, "Sandykayhomes"
- Contributions:29
Consider leaving the family member on title for the number of years that it takes to gift their share at no tax cost to anyone. Double check with a CPA. You're a homeowner now and should realize that the useful advice of a professional who saves you a lot of headaches later is well worth $250.
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
Lvm,
That is a question that really should be answered by a licensed tax professional. Even if I knew the answer with 100% certainty I would do the same as your loan officer as we are not licensed to talk specific tax law like this. Not only is it a better idea to ask a tax pro about things like this, there is a liability issue on our end.
I'm sure you could also do this research online and save the $250 however... :)
Sincerely,
Greg
- wetdawgs
- Contributions:26804
The tiny good news is that the annual exclusion for gifts is $13,000 (since 2009), but you are right, both spouses can give the limit. Above that, the person giving the gift has to pay taxes on the gift, not the recipient.
Most CPAs will answer a single question like that for far less than $250.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Your lender is correct. Loan officers should not give tax advice unless they are also a CPA. I would recommend contacting your accountant.
Gift of equity from family members, if you are familiar please respond
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