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object_reference
Yahoo User
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 Posted: Sat Jul 12, 2008 6:52 am Post subject: Tax implications of a gift from joint tenant in house purchase? |
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| I am buying a house with my domestic partner, who is providing half of the funds. We will both be on the title as joint tenants.My loan company wants that money gifted to me before they approve my loan.Is this suggested gift really considered a gift for tax purposes? |
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Cat
Yahoo User
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| Posted: Sat Jul 12, 2008 6:57 am Post subject: |
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| If you're both not on the loan, they might require that.Can you put your partner on the loan as well? Then both sources of money will be considered, not just your own.(And yes, it would be a taxable gift if it's made a gift) |
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Auntie Mame
Yahoo User
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| Posted: Sat Jul 12, 2008 7:01 am Post subject: |
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| No, don't make this complicated. Gifting will cause you tons of future problems. Just get a simple loan with both of your names on the loan & the title. If the loan company balks, walk out! There are hundreds of loan companies that want your bussiness and will not get you into a mess like a gift will.It would not be considered a gift, as it is "paying" to be put as a joint owner. You might have to pay income tax on this, perhaps as high as 28% on next year's taxes. |
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Bob F
Yahoo User
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| Posted: Sat Jul 12, 2008 7:29 am Post subject: |
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| This is not a gift since your partner is not giving you anything. You partner is paying money for their half the house while you are getting a loan for your half of the house. If you can't make your loan company see it this way, find another loan company.If you were going to be the sole owner of the home and were using your partner's money to pay for half the house, I could see them want a gift declared. But this is not the situation so it would be wrong to report it as a gift. |
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ninasgramma
Yahoo User
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| Posted: Sat Jul 12, 2008 9:50 am Post subject: |
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| I agree you might want another loan company who isn't going to complicate matters. Unmarried folks buy houses all the time, with one partner paying for the home, and are not met with this complication.However, if you proceed as required, the amount given to you in order for you both to own the house as tenants in common is a gift. If the amount of the gift is $12,000 or more, a gift tax return is required to be filed by the donor. This will result in gift tax owed if the lifetime gifts of the donor exceed $1 million. |
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