Down payment loan for first house

[Justin B]

What is the name of your state?
TX

In the near future I am planning on buying my first house. My parents agreed to lend me the down payment which will be around $30,000. What type of taxes, if any, will I have to pay for this loan and if I can get it under $22,000 can I consider it a gift that I will pay back?

 

[abezon]

A loan is not a gift & is not income. A gift is not income, either. The only entity that will care about the funds and whether they're a gift or loan is the mortgage company. It will require your parents to sign a statement saying that the money was a gift & you have no obligation to pay it back. Otherwise, the amount of the parental loan is deducted from the total amount the bank will lend you.

If your parents gift you $30,000, they both need to file gift tax returns. Each parent can gift you up to $11,000 per year without having to file a gift tax return. They might give you $8,000 before 12/31 & the rest when you buy the house.