Posted on: 22nd Apr, 2009 09:19 pm
We are going to purchase a property. The title will be on both my and my husband's name but the loan is on my husband name. I have a bank account which is under my name. The lender said they can't accept it for the loan because my husband's name doesn't show up. Instead, the lender asked me to fill in a gift of equity letter which indicating "I" Gift the money to "my Husband", the borrower. I am fine for that because it is the joint property even though it is under my name. But my question is:
Is there any tax issue for this?
The IRS rules that if it is above 11,000.00 there is some tax liability. The gift is more than $11,000.00. However this gift is wife to husband and we file joint return. I am confused. Thank you for your help.
Is there any tax issue for this?
The IRS rules that if it is above 11,000.00 there is some tax liability. The gift is more than $11,000.00. However this gift is wife to husband and we file joint return. I am confused. Thank you for your help.
Hi
If you gift the amount to your husband there may be some gift tax consequences. But there are certain gift tax exemptions which you can claim.
If you gift the amount to your husband there may be some gift tax consequences. But there are certain gift tax exemptions which you can claim.
tina, i dont' believe you're going to have any tax ramifications here. the "gift" aspect of the deal is that he doesn't have legal rights to the money right now, so the lender needs to show the availability. in other words, you're not really "gifting" the funds to him in the normal sense. it's marital money - i would suggest you simply look at it that way and not concern yourself with an taxation issues.
