Condo Purchase

[comment]

What is the name of your state? Maryland

Me and my mother are planning on purchasing a condo. She wants to help me with the down payment, but she does not want to be taxed on the money given for the down payment.

She will not be living there. I will.

Is it possible to avoid paying tax by putting both our names on the deed and my name alone on the mortgage? I am already pre-qualified for the loan by myself.

Any help is greatly appreciated.

 

[Snipes5]

There is no tax on gifts. If she gives you more than $11,000 in a calendar year, she will have to file a gift return, which will reduce her overall exclusion at death. However, no taxes will have to be paid now.

Have her give you $11,000 now (before Dec 31) and $11,000 after Jan 1. That way she can give you $22,000 towards the purchase without having to do a gift return. I don't know how much the condo is worth, but $22,000 is a 20% downpayment for a condo costing $110,000.

If mom wants to give you more money, have her wait and just give you the maximum gift amount in January each year.

I wouldn't mess around with putting her on the deed.

Snipes

 

[comment]

well

the "gift" would be more than 30k.

I dont have a problem with her being on the deed. Unless theres something about the tax that may cause a problem.

 

[abezon]

Just have her gift you $11,000 this year & the rest next year. Filing a gift tax return is cheaper & easier than putting her on the deed. You could even be a nice child & pay for the gift tax return's preparation ($50 -100).