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DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 789
Experience:  Years of Experience in Business & Personal Taxes
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I am buying a house and my parents are helping with the down

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I am buying a house and my parents are helping with the down payment. The 2013 gift limit is $14,000. I understand that my parents can each give a gift to me, my wife and my child for a total of 6 gifts or $84,000.

Do they need to write 6 checks (each parent to each giftee), 3 checks (married parents to each giftee) or can they write a single check?

DanielleCPA :

Welcome and thanks for your question!

DanielleCPA :

Each giftee needs to receive their own check.

DanielleCPA :

However, your parents do not need to write a separate check to each giftee.

DanielleCPA :

As you suggest, they can write three checks - one to you, one to your child, and one to your wife.


 

Customer:

so, 3 checks to each giftee, with each check for up to $28K (= 2 x $14) ?

DanielleCPA :

Correct.

Customer:

What about if we do a cashier's check or wire transfer?

Customer:

Depositing a personal check can be frozen for up to 7 days. Are there any problems if instead of personal checks we used cashier's checks or wire transfers?

DanielleCPA :

You can use a cashier's check or wire transfer. I still suggest it be done in three separate transactions to make it clear that the gifts are being made to three separate individuals.

Customer:

great, thanks

DanielleCPA :

You're welcome. I'm glad I was able to assist you this evening.

DanielleCPA and 2 other Tax Specialists are ready to help you