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gift of equity

Posted on: 04th Dec, 2009 11:11 am
I would like to purchase a condo from my son He is giving me a gift of equity. Are there any tax inplications on this gift.
Me the buyer or the seller my son.
Hi grnthmb,

You do not have to pay any tax because you are the recipient of the gift. It is the donor who has to pay the gift tax. If your son is gifting you the money, he will have to pay the tax. But given the amount of the gift he is making, he may not have to pay the taxes. There is an annual gift tax exemption of $13k. If the gifted amount does not exceed this limit, your son does not have to pay any gift tax. But even if the amount exceeds the annual gift limit, he can claim exemption from his lifetime gift limit of $1million.

Thanks,

Jerry
Posted on: 05th Dec, 2009 02:47 am
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