I am trying to purchase a new home. My father is helping me finance it. He's looking to transfer $250,000 to me to help me. Are there any tax consequences of doing this (i.e., gift tax, etc.)?
The money given to you to purchase the house is a gift if it is not a loan with an intent to pay it back with interest.
In 2018, there is a $15,000 and $30,000 exclusion for gift taxes for single and married couples, respectively. If your father is not married, the 2018 gift exclusion for gifts made to you is $15,000.
Any excess over the annual exclusion of $15,000 reduces the lifetime gift tax exemption amount of $5,600,000. There would be no immediate tax consequence if your father has not gifted more than the lifetime cap.
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Answered by: Scott Rubinsky, CPA, is a sole practitioner in Huntingdon Valley, Pa.