lending money to my son

What is the name of your state? Massachusetts

My wife and I want to lend about $28,000 to my son and his wife, towards the down payment of their house. They will return the entire amount to me in about 6 months. Is there any tax implications for either me or my son? Will I have to pay any gift tax? And will my son have to pay gift tax too, when he returns the money to me. Is there any way we can do this without having to pay any taxes?

Thanks,
Rich

[Snipes5]

This doesn't sound like a gift, it sounds like a loan. Have it written up with proper loan papers, and treat it that way, and neither of you will have any tax implications.

Snipes

Your son will be asked by the mortgage lender/broker if any part of the downpayment is borrowed. If he is honest he will tell them yes and those funds can't be used. The only way borrowed funds can be used is if one borrows from themselves from a 401k plan.
True gift funds can always be used as long as a paper trail is in place.

Originally posted by Buck Barker
Your son will be asked by the mortgage lender/broker if any part of the downpayment is borrowed. If he is honest he will tell them yes and those funds can't be used. The only way borrowed funds can be used is if one borrows from themselves from a 401k plan.
True gift funds can always be used as long as a paper trail is in place.

I dont understand. Why can't he use the money I lend him? Can you elaborate on the last sentence. What paper trail?

As Snipes5 said, its not really a gift, its more like a loan. And he will be returning the money to me in the same tax year.

Thanks,
Rich

Borrowed money can't be used for a downpayment.
A paper trail is proof through cancelled checks, deposits, and statements as to where the money came from and where it went.
Gifted money CAN be used in certain occasions for a down payment.