What is the name of your state? Alabama
We currently have our house and mother-in-law's house for sell. We plan to buy a new house that will have an apartment for m-i-l and the plan is that the marjority of profit from m-i-l's house will be used as a down payment and the loan will then be in my and my husband's name. The question is - Will the money from m-i-l that is used for a down payment be considered a gift to us if we don't have her name on the loan, and then have to pay taxes on that amount?
Thank you, Donna
We currently have our house and mother-in-law's house for sell. We plan to buy a new house that will have an apartment for m-i-l and the plan is that the marjority of profit from m-i-l's house will be used as a down payment and the loan will then be in my and my husband's name. The question is - Will the money from m-i-l that is used for a down payment be considered a gift to us if we don't have her name on the loan, and then have to pay taxes on that amount?
Thank you, Donna