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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54014
Experience:  29 years of experience as a tax, real estate, and business attorney.
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We are purchasing a house my mom owns (not her primary

Customer Question

Customer: We are purchasing a house my mom owns (not her primary residence). Sale price is 413K. Initial loan ant is 330K. Down Pmt is approx 73K. She would like to give a gift of equity for the down payment. What will be the tax implications for her. I don't want her to give the gift of equity if it's going to affect her taxes in a negative way.
JA: Thanks. Can you give me any more details about your issue?
Customer: This is in Los Angeles, CA
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Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

Expert:  Richard replied 1 year ago.

Hi there. It seems that your prior expert has opted out. My name is ***** ***** would you like me to assist you with this? Thanks.

Customer: replied 1 year ago.
please
Expert:  Richard replied 1 year ago.

Thanks for your reply. You need not worry about any gift tax as there would be no gift tax consequences. Recipients of gifts are not subject to gift tax. And, there should also be no gift tax due from the donor. Each donor can give $14,000 per year per person under the annual gift exclusion. In addition to that, for any amounts in excess of the $14,000 in a year, each person has a $5,430,000 lifetime exemption....which means a person can give a cumulative amount of up to $5,430,000 in gifts over and above the $14,000 annual gift exclusion amount without incurring gift tax....the donor must file a gift tax return to let the IRS know how much of the lifetime exemption is being used, but there will be no gift tax until cumulative additional gifts have exceeded the $5,430,000.

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