How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11553
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

My wife and I wanted to buy a house, but I am non US citizen

Customer Question

hi, my wife and I wanted to buy a house, but I am non US citizen and rates would be better if she had the mortgage in her name. the money in our joint account, and any money we have, could I theoretically gift it to her? for this mortgage to be in her name and my question is, would this get taxed or be taxed free? we are in new york city.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

Hi- I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law,an MBA (specialization in finance& tax), and BBA from Mercer University’s Stetson School of Business and Economics, as well as CFP® and CRPS designations.

I can help here

...

Expert:  Lane replied 1 year ago.

If you are a tax resident (Citizen, green card or pass substantial presence test) the gift taxes ( a transfer tax) work the same for you as any US citizen ... unlimited gifts between spouses.

Expert:  Lane replied 1 year ago.

If the money is already IN the joint account, and she has the income to underwrite the loan successfully, it would be her buying the property.

...

Then (for the same reason as above) if you want to be ON the deed, she could always gift you joint ownership (essentially giving you a 50% interest) in the house.

...

Expert:  Lane replied 1 year ago.

If you are NOT a resident (and therefore considered a non-resident alien for tax purposes) you can still gift an unlimited amount, but would need to use form 3520 simply to DISCLOSE to treasury (still not taxed, but gifts form foreign persons must be disclosed - this is a money tracking, for purposes of money laundering and other illegal purposes form NOT a tax form)... IF the gift is in excess of 100,000

Expert:  Lane replied 1 year ago.

But again, if the money is already there and she buys the house in her name there IS no gift other than her potentially gifting you joint ownership after she buys.

...

Please let me know what questions you have from here

...

Lane

...

Expert:  Lane replied 1 year ago.

Hi,

I’m just checking back in to see how things are going.

Did my answer help?

Let me know…

Thanks

Lane