Attn: loku, Is donation from family member for the purchase of a home tax deductible?

Attn: loku, Is a gift from family member for the purchase of a home tax deductible?

We're thinking about asking a family member to help us with a purchase of a home. We would be selling our existing house and applying that equity towards the new home. We've found a property that suits us but we're a little short on equity. Is there any financial benefit for them if they gave us the money? e.g. -- such as a tax exemption? And/or is there a practical way for them to share the equity as the new house appreciates? We're in California. THANKS!

If they give you the money, there is no tax benefit I can think of and no way for them to share in the equity. However, if they purchase the house as tenants in common with you, they would own a portion of the house and they would therefore automatically share in any appreciation of equity.