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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4511
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I just sold my home. Profit of $170.000 my gf. Is taking

Customer Question

I just sold my home. Profit of $170.000 my gf. Is taking a mortgage loan for $40.000 how do I give my profit to her to complete sale?
Submitted: 10 months ago.
Category: Finance
Expert:  Rakhi Vasavada replied 10 months ago.
Dear Friend,Hello and welcome. Thank you for providing an opportunity to assist you. If you are trying to do this to save tax, I don't think this will help you. However, I am sure, this is not your purpose.Having said this, I believe, you should take a direct rout to gift. You can simply gift her $14,000 without creating any tax issues. The annual exclusion for 2014, 2015, and 2016 is $14,000. NOW, if you are considering to give her more than 14,000, you can still give it. The only difference is that any amount in excess of $14,000 will count from your life time gift tax exclusion limit of $ 5.45 million. You will still not be taxed but since the amount would be in excess of annual tax exclusion limit of $14,000, the excess amount will be reported in Form 709. If you make a taxable gift (one in excess of the annual exclusion), you must file Form 709: U.S. Gift (and Generation-Skipping Transfer) Tax Return. The return is required even if you don’t actually owe any gift tax because of the $5.43 million lifetime exemption. I am sure this would help. You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question. Warm Regards,