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  1. #1
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    Gift Tax Question

    If my Fiance "gifts" me half the downpayment on the house, are there any gift tax implications. The gift would be over $13,000. We get married in September of this year.

    I could just add her to the note, but she is in school and has little income, and a short credit history, so I don't know if that would hurt our rate.

    I could also just take the $13,000 and try and come up with the rest on my own, may have to liquidate a few stocks, but not a big deal.



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    Re: Gift Tax Question

    as long as its not over $100,000 you dont have to report it on a 3520... if it is a loan that you're paying back at some point in the future it must be reported to the IRS.

    otherwise you should be fine




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  3. #3
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    Re: Gift Tax Question

    Quote Originally Posted by CLONECONES View Post
    as long as its not over $100,000 you dont have to report it on a 3520... if it is a loan that you're paying back at some point in the future it must be reported to the IRS.

    otherwise you should be fine
    Looking at a 30 year fixed rate mortgage. Gonna put 20% down, but she is kicking in some of the downpayment. Since she is not on the note, she has to fill out a gift document with the lender. Wondering if the gift is over $13,000, if that triggers gift tax?

    Should I keep it under $13,000 since we aren't married at the time of the gift? But by the time we file our next tax return we will be married.



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    Re: Gift Tax Question

    Quote Originally Posted by BloodyBuddy View Post
    Looking at a 30 year fixed rate mortgage. Gonna put 20% down, but she is kicking in some of the downpayment. Since she is not on the note, she has to fill out a gift document with the lender. Wondering if the gift is over $13,000, if that triggers gift tax?

    Should I keep it under $13,000 since we aren't married at the time of the gift? But by the time we file our next tax return we will be married.

    lemme check out guidelines/gift letter hang on




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    Re: Gift Tax Question

    Do you really think putting her on the note will hurt your rate?


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    Re: Gift Tax Question

    Yup - just keep it at $13,000 and 0 gift tax will be owed by either party for any reason




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    Re: Gift Tax Question

    Quote Originally Posted by Hawkeye11en1 View Post
    Do you really think putting her on the note will hurt your rate?
    Maybe not, I am asking my lender what she thinks.



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    Re: Gift Tax Question

    No gift tax is applicable in this case if I'm not mistaken.



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    Re: Gift Tax Question

    Only my two cents, but I would have her give you a loan and not a gift. This opens up some other questions I don't necessarily know the answers to. What would need to be done for her to 'forgive' the loan later and so on. But if anything were to happen prior to getting married it would make things a lot more clear cut I would think. If something happens to you, if something happens to her, if there are any relationship problems, ect ect. Those things are all pretty unlikely, but could cause less headaches later potentially.


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    Re: Gift Tax Question

    Keep it to the yearly exemption limit that you mentioned (13K or whatever it is right now). Also keep in mind that that is a total for the year so if she bought you a car or something later this year it would put her in the taxable category.

    After that 13K it will start to cut into her lifetime tax free gift allotment.


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    Re: Gift Tax Question

    Quote Originally Posted by vmbplayer View Post
    Keep it to the yearly exemption limit that you mentioned (13K or whatever it is right now). Also keep in mind that that is a total for the year so if she bought you a car or something later this year it would put her in the taxable category.

    After that 13K it will start to cut into her lifetime tax free gift allotment.
    What happens when they get married though?



  12. #12
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    Re: Gift Tax Question

    Quote Originally Posted by longtimeclone View Post
    What happens when they get married though?
    when they marry they have a $5M lifetime gift tax exemption. If they're really worried about hitting this mark... then I hope I become friends with them.




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  13. #13
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    Re: Gift Tax Question

    And the big thing to remember is that over the 13K limit, you would need to report it to the IRS. So generally, it is always best to stay under the 13K limit.



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    Re: Gift Tax Question

    wish I could get a girl to give me $13,000



  15. #15
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    Re: Gift Tax Question

    Quote Originally Posted by longtimeclone View Post
    What happens when they get married though?
    If you're asking in terms of the gift tax married couples have an unlimited exemption.

    Until they get married though it all counts like everyone else. So when you buy her the engagement ring that is a gift and subject to the unmarried rules.


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