[USER]

Ok I have a question I think someone in here might have the answer to. So about 12 years ago I wanted to buy a house but being a new truck driver couldn’t get a good mortgage. No problem dad got one for me and put it in his name.

Shoulda got a mortgage 50 times and just put it in my name but never did.

Just bought a nicer bigger house with some land, so it’s time to sell my old house. My dad’s obviously giving me the proceeds of the sale but for him to give me that money it’d be a huge tax burden.

He’s probably going to just give me cash which he has on hand.

That being said what’s the cheapest way for me to get that money into my bank account with out Uncle Sam double dipping on this money that’s already been taxed?

[Mindi]

1. Why do you need to put it in your bank account? Depending on the amount I’d keep it as cash.

2. If you are depositing it at the bank, make small deposits under 10k.

[Kyle]

He can give it to you and use his annual and lifetime gift tax exclusions.

But I think he will have taxable gains on the house sale since he isn’t occupying the house.

It might be too late but maybe he could have 1031 exchanged it for the new house and then gifted you the new house.

Or maybe he can gift you the house before selling? And then you sell it?

I’m not sure on all this, just spit balling. I would talk to a tax advisor.

[Robert]

Nothing wrong with you coming to seek the guidance of the hive mind…… But for questions like these I would pay the appropriate consultation fees for a good tax attorney or a good tax CPA.

[Sage]

I could be wrong but I believe that you can just use a quick claim deed to transfer ownership without incurring a tax on the sale, and then it should be covered under the lifetime gift exemption but I would definitely consult a professional.

[Nicole]

Talk to a CPA. Sometimes I think they allow family members to live there and still be a primary.

[Shura]

Your father can give you $17,000 per year without paying gift tax. If the proceeds from the house sale exceed the exemption limit, you can consider giving it in multiple installments

[Stephanie]

A…..ummm……friend of mine did a substantial “exchange” of money between them and a parent and to avoid costs the friend and the parent opened a joint bank account at a bank, parent deposited money, friend withdrew, bank account stays open with minimal money in it in case the same were to be needed in the future

[Steve]

What taxes? Capital gain? Yes, but those either one of you will pay. Gift tax?

Not unless it’s more than $13.5 million that he’s gifting you.

[Author]

Posts