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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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My mom and I are on the deed of a new house. I paid the $10k

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My mom and I are on the deed of a new house. I paid the $10k down payment and she paid the balance in cash from the sale of her previous home. Does this create any type of tax burden for my mom?

My wife and I are living with her and my step-dad in order to take care of them. Looking at the gift tax law it appears that if you give [money or something of value] and do not expect something of equal value than it is a gift. We are providing care for them and therefore my mom is expecting something in return.

We live in SC. If you need more info to help answer my question please let me know.


PS... any documentation you can provided is greatly appreciated

Hello and thank you for using Just Answer. Purchasing a home with your mother does not create a tax liability for either you or your mother.


Living with and taking care of your parents is not a taxable gift to your parents. Your mother paying the balance of the home is not a taxable gift to you. If you sell the home and you received your mother share of the sale of the home that would be a taxable gift and your mother must report the gift, (net profit over $13,000 in 2009), on her tax return.



Customer: replied 7 years ago.
In the event of her death, the home would be in my name only. At that point is there a tax liability against her estate?
Yes, the federal estate tax is imposed on the transfer of an individual's property at death and on other transfers considered to be the equivalent of transfers at death. For estates of individuals dying after 2009, the estate tax will be repealed. The estate tax exclusion for 2009 is $3,500,000.
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