Are there any tax consequences of my father transferring $250,000 to me to help me finance a new home?

by Scott Rubinsky, CPA | Apr 30, 2018

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.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by:  Scott Rubinsky, CPA, is a sole practitioner in Huntingdon Valley, Pa. 

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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