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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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I am buying a house. My brother is paying for it. Will he

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I am buying a house. My brother is paying for it. Will he have to pay any gift tax for the money? Can it be counted as part of the life time limit even though the whole sum is given in one year? The amount is under 100,000.00

Thank you in advance for your response.

Robin D. :

Hello and thank you for using Just Answer,

Robin D. :

He will not have to pay Gift tax as long as he has not used up his lifetime (a little more than $5mil).

Robin D. :

He will need to report the gift on Form 709 but that is to show the amout he is not paying tax on and to use his lifetime limit.

Robin D. :

The amount over $14,000 is reportable, then he can use his lifetime limit so he does not pay Gift Tax.

Robin D. :

I really enjoyed working with you – please feel free to request me again when you come back to ask another question.

Robin D. :

Thank you in advance for a positive rating.

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Robin D. :

Let me know that you can read the posted answer please.

Robin D. :

I can change to Reg Q&A but then we loose the ability to CHAT in real time.

Robin D. :

I will switch so maybe you will be able to respond.

Robin D. :

The system said you entered "JACUSTOMER-955470m6- has entered this chat!" but then it said you exited "JACUSTOMER-955470m6- has stepped out of this chat."

Robin D. :

Can you actually type anything?

Robin D. :

All I see is that you are standing by.



Standing By
OK, I switched and now you need to respond here instead of CHAT.

Thanks
The system now says you rated with less than satisfaction. Please let me know what part of the question you posted I did not address so I can clarify.

Thank you
Customer: replied 3 years ago.

Just need clarification - So if the amount can be counted as part of the life time limit (even though the whole sum of under 100K is given in 2013), does it mean that (s)he won't have to pay 'gift' taxes?

Yes, that is exactly what it means.
Is that why you rated Poor? Please just respond to me until you understand all.
I want to make sure you understand.
CustomerLast Viewed on 8/23/2013 at 11:40 AM

 

Currently, a person can give up to $14,000 each to any number of persons in a single year without incurring a taxable gift ($28,000 for spouses "splitting" gifts). The recipient (you) of the gift typically owes no gift tax or income tax, and doesn't even have to report the gift unless it came from a foreign source. Under current law you can give away up to $5.25 million (annually adjusted for inflation) during your lifetime—over and above the annual exclusion and still avoid gift tax.

 

 

 

 

 

 

 

Please let me know if you need more information or instructions for your brother on his reporting requirements.
I apologize for any technical problems today.
I know those can be frustrating.
My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.
Customer: replied 3 years ago.

I wrote a lengthy note, but it does not show up on this stream.


 


I am purchasing a home. My brother will pay for it - 80K. My question was, since it is more than 14K, will he have to pay 'gift' taxes on the amount since it was paid all at once (2013). Will the life time limit apply for the 80K given in 2013 so that he wouldn't have to pay 'gift' taxes for the 80K?

No,he will not. He will complete the Form 709 and claim the exclusion.

I too wrote a lengthy response to you.

Here is a copy of it:

Robin D. : Hello and thank you for using Just Answer,

Robin D. : He will not have to pay Gift tax as long as he has not used up his lifetime (a little more than $5mil).

Robin D. : He will need to report the gift on Form 709 but that is to show the amount he is not paying tax on and to use his lifetime limit.

Robin D. : The amount over $14,000 is reportable, then he can use his lifetime limit so he does not pay Gift Tax.

Robin D. : I really enjoyed working with you – please feel free to request me again when you come back to ask another question.

Robin D. : Thank you in advance for a positive rating.

Robin D. : My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.

Robin D. : Let me know that you can read the posted answer please.

Robin D. : I can change to Reg Q&A but then we loose the ability to CHAT in real time.

Robin D. : I will switch so maybe you will be able to respond.

Robin D. : The system said you entered "JACUSTOMER-955470m6- has entered this chat!" but then it said you exited "JACUSTOMER-955470m6- has stepped out of this chat."

Robin D. : All I see is that you are standing by. CustomerStanding By

Robin D. : Hello

Robin D. : Ok I am switching to Q&A

Robin D. : Please look under My Questions to respond.

 

Again when you responded and asked if your brother would have to pay tax, I responded no. He would be allowed his exclusions for lifetime.

Your original question was
"I am buying a house. My brother is paying for it. Will he have to pay any gift tax for the money? Can it be counted as part of the life time limit even though the whole sum is given in one year? The amount is under 100,000.00 "


I explained that your brother would not need to pay tax as long as he has not used up his lifetime limit.
The lifetime limit is not a problem just because he gives you all the money in one year.
He would need to file Form 709 but he would not owe tax on the gift.

Robin D. and 3 other Tax Specialists are ready to help you
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I'm just following up with you to see how everything is going. Did my answer help?


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TaxRobin

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