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When gifting a downpayment for your parents place to a banking

Customer Question
institution will I have to...
When gifting a downpayment for your parents place to a banking institution will I have to pay gifting tax
Submitted: 6 years ago.Category: Tax
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Answered in 18 minutes by:
8/3/2011
Tax Professional: Tax.appeal.168, Tax Accountant replied 6 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
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You are allowed to give a cash gift to any one individual a maximum of $13,000 per year without creating a taxable event. If the gift amount exceeds the $13,000 for one person, though you will not have to pay tax, you will need to file a Form 709 Gift tax Return. For 2011/2012 the lifetime gift tax exemption is $5 million dollars. To answer your question,...no you will not have to pay tax unless the downpayment is over $5 million dollars.

Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Tax Professional: Tax.appeal.168, Tax Accountant replied 6 years ago
My apologies, please note that the lifetime gift tax exemption amount is $1mil for gift tax. The $5mil limit is for estate tax.
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