What is the name of your state? GA
In regards to your post, I wasn't sure if I was supposed to post a reply or start a new thread
I've done both so I apologize for the dual posts
https://forum.freeadvice.com/showthread.php?t=214314
Follow Up Question
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GA ~
Thank you very much for your help.
I was wondering if I could clarify something
Does this mean that if he (the father) wanted to ~ he could purchase the home for us, as a gift, and unless the total lifetime gift value were over $1.3M then he would not end up having to pay gift tax on it?
I'm afraid I don't know if he is confused, or if he is deliberately trying to do it this way and telling us that's how he "has" to do it.
Thank you again
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abezon
Senior Member Join Date: Aug 2002
Location: Washington
Posts: 2,502
He's confused. He can't be the mortgage holder and the landlord. You're either renters (& he files a schedule E & claims depreciation) or buyers (you make the mortgage payments & live in the house & claim mortgage interest & property taxes). With the second scenario, he doesn't have to claim the payments or interest as income if his only involvement is to hold title because you can't get the loan in your own name. Be sure the deal is in writing and includes a provision that you inherit the house if he dies before you pay it off.
BTW, he doesn't actually PAY gift tax. He files a gift tax return and his eventual $1.3M tax-free estate is reduced by the value of the house. Unless his estate is large, it won't affect him at all.
__________________
This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post.
In regards to your post, I wasn't sure if I was supposed to post a reply or start a new thread
I've done both so I apologize for the dual posts https://forum.freeadvice.com/showthread.php?t=214314
Follow Up Question
--------------------------------------------------------------------------------
GA ~
Thank you very much for your help.
I was wondering if I could clarify something
Does this mean that if he (the father) wanted to ~ he could purchase the home for us, as a gift, and unless the total lifetime gift value were over $1.3M then he would not end up having to pay gift tax on it?
I'm afraid I don't know if he is confused, or if he is deliberately trying to do it this way and telling us that's how he "has" to do it.
Thank you again
-----------------------------------------------------------------------
abezon
Senior Member Join Date: Aug 2002
Location: Washington
Posts: 2,502
He's confused. He can't be the mortgage holder and the landlord. You're either renters (& he files a schedule E & claims depreciation) or buyers (you make the mortgage payments & live in the house & claim mortgage interest & property taxes). With the second scenario, he doesn't have to claim the payments or interest as income if his only involvement is to hold title because you can't get the loan in your own name. Be sure the deal is in writing and includes a provision that you inherit the house if he dies before you pay it off.
BTW, he doesn't actually PAY gift tax. He files a gift tax return and his eventual $1.3M tax-free estate is reduced by the value of the house. Unless his estate is large, it won't affect him at all.
__________________
This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post.