My mother wants to give us cash to buy a house with, what's the smartest way to do that so that it saves us money?
Answers | 3
The first question to be asked is, how much money is she giving you? The annual gift tax exclusion for 2015 is $14,000 per person. If your mother is married then you will be able to receive $28,000 gift tax free in 2015. From your question, and the use of "us" I will assume you are married or have a significant other. Your significant other is entitled to a additional $28,000 tax free gift from your mother and her spouse, for a total of $56,000 gift tax free dollars. If the amount she plans on gifting you is greater than her annual gift exclusion allowance then I would advise you and your mother to speak with your CPA or EA about the use of your lifetime gift exclusion ($5.43 million in 2015) and filing a Form 709: U.S. Gift (and Generation-Skipping Transfer)Tax Return in the year of the gift.
Smartest way is to spend a few hours with one financial adviser whom you can trust to and give him all facts about your mom's financial statu,s and yours. Also consult with tax adviser too, and then make your final decision.