The Hussey Team owner JP Hussey is here to talk about the MYTH of the gift tax.
• Oftentimes, first time homebuyers need help from friends and family to make their down payment. The first thing to keep in mind is that this has to be a gift; it cannot be an unsecured loan, where the homebuyer agrees to pay back their benefactor.
• Gift donors are often under the impression that they will need to pay tax on a gift they give to a homebuyer. However, this is not typically the case.
• Gift givers can give $15,000 per year that is excluded from tax.
• Any gift above that $15,000 exclusion can likely be pulled from your lifetime gift tax exclusion, which is $11,400,000.
• For example, if you give a gift of $115,000, $15k comes from your $15k annual exclusion "bucket," while the other $100k comes from your $11.4mm lifetime exclusion "bucket." This leaves you with $11.3mm left in your lifetime exclusion bucket to give gifts tax free.
*We are not tax professionals; please see your CPA or other tax professional for tax advice specific to you.*
Ещё видео!