Why do we trust posters answers? The tax accountants need the work and would love to answer your questions for a fee.

OP, will you adopt me?

Anonymous wrote:

Anonymous wrote:You'll each need to write a letter describing that it is a gift, with promise of nothing in return (not a loan!). Keep careful records of transferring the money - including how the money got into your acct if you are combining accts to then write him a check or do a wire transfer.

By doing this is that just for the record for the purpose of law or what? I don't expect anything in return at all.

It's documentation for the mortgage lender for him. They expect very detailed records of $$ transfer in order to process

Anonymous wrote:It's not actually taxed, until you go over your lifetime gift amount. You would just need to fill out some forms. To get around this, you could give your son $14,000 this year, as could your husband. If your son is married, you could also give his spouse $14,000 each. That would get you to about $50,000.

+1

Anonymous wrote:You'll each need to write a letter describing that it is a gift, with promise of nothing in return (not a loan!). Keep careful records of transferring the money - including how the money got into your acct if you are combining accts to then write him a check or do a wire transfer.

By doing this is that just for the record for the purpose of law or what? I don't expect anything in return at all.

It's not actually taxed, until you go over your lifetime gift amount. You would just need to fill out some forms. To get around this, you could give your son $14,000 this year, as could your husband. If your son is married, you could also give his spouse $14,000 each. That would get you to about $50,000.

You'll each need to write a letter describing that it is a gift, with promise of nothing in return (not a loan!). Keep careful records of transferring the money - including how the money got into your acct if you are combining accts to then write him a check or do a wire transfer.

Anonymous wrote:So, will my son be trouble if he got $50 from me, then another $13k from my wife, another 12k from his brother, and another 14k from cousin?

jesus f'in christ... maybe your son needs to grow up and be able to afford things on their own.

Anonymous wrote:So, will my son be trouble if he got $50 from me, then another $13k from my wife, another 12k from his brother, and another 14k from cousin?

Trouble? How?

All these people are willing to give him those huge amounts of money? Wow. Or is this a "wink wink/nod nod" situation? My guess is such a huge inflow of capital from family members might raise an underwriter's eyebrow, but "trouble?" No, unless you're committing fraud.

There are no tax issues at play here, though. Except for a gift tax return being filed. Is your son married? If so, you can give $14,000 to each of them. Any kids? ANother $14,000 per.

So, will my son be trouble if he got $50 from me, then another $13k from my wife, another 12k from his brother, and another 14k from cousin?

Anonymous wrote:I know that you will be taxed if you gifted more than $14k for 2013, but actually how much you will be taxed? For example, if you write a gift check for $50K to your adult son to put down for a house, how much really will be taxed? Or will the IRS wonder where your son got that money from?

No, you're not taxed if you gift more than $14,000. There's a lifetime exemption of $5 million ($10 million). But you would have to file a gift tax return so the amount gets deducted from your lifetime allowance

Your bigger issue won't be the IRS, but rather your son's bank and underwriter. You'll have to affirm that it is, in fact, a gift, and not a loan.

Not a tax expert here, but my understanding is that the amount gets subtracted from the lifetime total that you can give before being hit with inheritance tax (which is millions). So if you want to give $50,000, there's no tax on it for either of you. They just don't want bazillionaires, giving 1 million to each grandkid each year to avoid estate tax down the road. It's a simple form.

I know that you will be taxed if you gifted more than $14k for 2013, but actually how much you will be taxed? For example, if you write a gift check for $50K to your adult son to put down for a house, how much really will be taxed? Or will the IRS wonder where your son got that money from?