Donations for down payment (New York, York: mortgage, loans, how much)
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I know we talked about this before but I had some questions. Let's say family and friends each donated $14,000 or whatever the limit is for New York State before getting taxed. How does that work out? Let's say for arguments sake that people want to help out and donate towards a down payment. And it worked out like the following?
Cousin gives 12k to husband to be.
Cousin gives 12k to wife to be.
Father gives 12 to husband.
Father gives 12 to wife.
Mother, and so on.
It's various people are giving donations into a bank account is that okay?
Maybe for tax purposes you would have no problem but wait until your mortgage company gets a look at your bank statements and starts with the questions.
Yes, they might be gifts but Im sure the mortgage company would want to definitely make sure they aren't loans.
The bank will question you about where the money came from, if the donations are large deposits. I also think you might have to fill out paperwork. Not 100% sure on all of this because we have never been lucky enough to have someone help with a down payment. We put our down payment on our house all by ourselves and mind you I was only at my job 1 year making $24,000 a year at that time. Now we are living in the same house 11 years.
It is no,problem at all as long as you show statements before and after for everyone involved, along with a completed gift form from each. Simple as that. The money had to be in all of the doners' accounts for 30 days prior to the gift.
I know we talked about this before but I had some questions. Let's say family and friends each donated $14,000 or whatever the limit is for New York State before getting taxed. How does that work out? Let's say for arguments sake that people want to help out and donate towards a down payment. And it worked out like the following?
Cousin gives 12k to husband to be.
Cousin gives 12k to wife to be.
Father gives 12 to husband.
Father gives 12 to wife.
Mother, and so on.
It's various people are giving donations into a bank account is that okay?
If this was truly happening you would be asking the professionals not a public forum!! Give me a break!! how much truth is there to anything you have said on here anyway?
In answer to this pathetic question! not sure if they still do this but you will be asked to get a letter from (and possibly have the person giving you the $) the person saying it is a gift & they do not ever expect you to pay it back. That being the case who would be stupid enough to give you the money then sign a release like that!!
Is This your only form of entertainment!! If it is watch some TV & get some better ideas.
I know we talked about this before but I had some questions. Let's say family and friends each donated $14,000 or whatever the limit is for New York State before getting taxed. How does that work out? Let's say for arguments sake that people want to help out and donate towards a down payment. And it worked out like the following?
Cousin gives 12k to husband to be.
Cousin gives 12k to wife to be.
Father gives 12 to husband.
Father gives 12 to wife.
Mother, and so on.
It's various people are giving donations into a bank account is that okay?
Anyone can give/gift another person up to $14,000/yr without tax ramifications; stranger, relative--doesn't matter.
If you have the $$ in your account at least three months prior to applying for a mortgage, no one is going to ask any questions, because they won't know it happened. For all they know, that could be your savings.
If you have don't have the $$ in your account when you first apply (or go for a pre-approval), then subsequent deposits will trigger questions. You will be asked where the $$ came from and the giver/gifter will be asked to prove that it came from their account (by showing statements, etc.) as well as asked to sign a gift letter (as was mentioned earlier), stating (swearing) the money was a gift which need not be repaid.
All a result of the Patriot Act. It is what it is.
Anyone can give/gift another person up to $14,000/yr without tax ramifications; stranger, relative--doesn't matter.
If you have the $$ in your account at least three months prior to applying for a mortgage, no one is going to ask any questions, because they won't know it happened. For all they know, that could be your savings.
If you have don't have the $$ in your account when you first apply (or go for a pre-approval), then subsequent deposits will trigger questions. You will be asked where the $$ came from and the giver/gifter will be asked to prove that it came from their account (by showing statements, etc.) as well as asked to sign a gift letter (as was mentioned earlier), stating (swearing) the money was a gift which need not be repaid.
All a result of the Patriot Act. It is what it is.
Elke is right on this. We gave to our daughter in 2002 towards her home and had to sign it was a gift (total about $16,000 between us ). The fact her father and I had to split it as separate "gifts" and fill out gift form for IRS when we did taxes was insane. She also had to list the relation of anyone who gave her money on her mortgage ( we gave her money as did her aunt and uncle; all 100% gifts, planned for and fully intended.....now, if the 2nd daughter ever buys a house, I cannot imagine what new wrinkles will be in that!)
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