What happens, taxwise, if I put my parents on the title of a new home for which they gave me $100,000 to put toward the down payment?

by Scott Rubinsky, CPA | May 14, 2019

My elderly parents will be moving in with us and are giving us $100,000 toward a down payment on a new home. We intend to put them on the title since they will be living with us and it's not a gift. Is that all I need to do to avoid any tax implications?

Your parents can be co-owners of the house and the $100,000 won’t be considered a gift, especially if the house becomes their personal residence.

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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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