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gift tax and real estate

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susan t

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What is the name of your state? TX
Thank you so much for your reply IOKU I appreciate your help greatly. RE SUSAN T from 9/23/02 post concerning buying a home for Mom and Dad. If they gift us the $120,000 who will have to pay the gift tax on it? Also....if we put the mortgage in my name and both my parents name would it still be a gift if they used it as a down payment? There is no reason to believe at this time that they would be in need of a nursing facility they are both in good health. However, you never know...so I am trying to best prepare for any future situations. I have never had any experience in this type of thing so it is all very confusing to me as to how best do this.
A mortgage officer said maybe we should put the deed in my husband and I's names, & have each parent gift $10k to both my husband and I and then finance the rest of the mortgage so we can take the interest deduction. The sales price of the home is $233,000. We would be able to get $40K in non-taxable gifts this year for the down payment and then another $40K after January 1,2003, to put towards the mortgage. Or they can put the whole $120K from the proceeds of the sale of their home in Ohio. What do you suggest? Again thank you for your help it is great appreciated!!
Susan
 



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