If you received $ as a gift from family towards your house - question

MrsTC Posted: Apr 22, 2004 09:24 PM

If you received $ as a gift from family towards your house - question

did you make copies of the check? Or did they have to sign a paper stating it was a gift? In order to prove the source of the funds....

Kelly9904 Posted: Apr 22, 2004 09:35 PM

Re: If you received $ as a gift from family towards your house - question

They had to sign a paper stating the amount of the gift.

MrsTC Posted: Apr 22, 2004 09:40 PM

Re: If you received $ as a gift from family towards your house - question

Who did they have to sign it for? I am SO confused....

missmmpr Posted: Apr 22, 2004 09:50 PM

Re: If you received $ as a gift from family towards your house - question

the bank makes you fill out a gift letter

Kelly9904 Posted: Apr 22, 2004 09:51 PM

Re: If you received $ as a gift from family towards your house - question

We got a form that had to be filled out. It simply said who gave the gift to whom and how much. It had to be signed and returned with the mortgage paperwork. They sent it to us in our mortgage package!

MrsTC Posted: Apr 22, 2004 09:58 PM

Re: If you received $ as a gift from family towards your house - question

oh ok....so i would have to get the form from my mortgage bank and have my family member fill it out....thank you i have been going nuts. I forgot to make a copy of the check before i deposited it and i have been making myself miserable all night!

Kelly9904 Posted: Apr 22, 2004 10:01 PM

Re: If you received $ as a gift from family towards your house - question

Dont worry they know everything, if they see a big deposit they automatically think its a gift and ask about it! We didnt keep a copy of the check either!

Kel Posted: Apr 22, 2004 11:48 PM

Re: If you received $ as a gift from family towards your house - question

I can't recall the ins-and-outs .. but there is something regarding taxes and any individual gift amounting to more than $10,000 .. or at least there was something like that about 5 years ago.

Kelly9904 Posted: Apr 23, 2004 08:55 AM

Re: If you received $ as a gift from family towards your house - question

Posted by Kel

I can't recall the ins-and-outs .. but there is something regarding taxes and any individual gift amounting to more than $10,000 .. or at least there was something like that about 5 years ago.

I believe if its more than 10K you have to claim it and pay taxes on it.....

MrsTC Posted: Apr 23, 2004 10:04 AM

Re: If you received $ as a gift from family towards your house - question

so we will have to give them our bank statements?

junebride04 Posted: Apr 23, 2004 12:21 PM

Re: If you received $ as a gift from family towards your house - question

I know that you have to get some sort of paper or form from the bank. And if it's over $10,000 I think you need to report it or something like that. If for example your family wants to contribute $50,000 it's a better idea to get five $10,000 checks I think.

gpsyeyes Posted: Apr 23, 2004 01:51 PM

Re: If you received $ as a gift from family towards your house - question

I think you are referring to the tax free gift allowance (exemption) for parents to give their children up to 10K a year. This is not related to using it for a mortage downpayment. Although you don't pay taxes on it, when you are going for a mortgage, depending on the type of mortgage, you have to show where it came from. Sometimes you have to show the person's bank statement to show they took it from their account and then you put it into yours, other times, they don't need any proof - it all depends on the loan you are getting.

Kel Posted: Apr 24, 2004 11:05 PM

Re: If you received $ as a gift from family towards your house - question

While the tax free exemption is not something directly related to mortgage paperwork .. I think people should be aware of whatever the tax laws are for gifts exceeding $10,000 .. and while I can not recall the tax laws .. I do remember .. that the total amount is $10,000 .. so writing 5 checks of $10,000 would not be a way around it .. at least that much I remember .. unless I was told incorrectly way back when.

Of course, 5 checks of $10,000 given individually over 5 years .. now that would be okay .. but not all 5 in one year.

junebride04 Posted: Apr 25, 2004 09:11 AM

Re: If you received $ as a gift from family towards your house - question

Posted by Kel

While the tax free exemption is not something directly related to mortgage paperwork .. I think people should be aware of whatever the tax laws are for gifts exceeding $10,000 .. and while I can not recall the tax laws .. I do remember .. that the total amount is $10,000 .. so writing 5 checks of $10,000 would not be a way around it .. at least that much I remember .. unless I was told incorrectly way back when.

Of course, 5 checks of $10,000 given individually over 5 years .. now that would be okay .. but not all 5 in one year.

Hmmm....i think maybe you're right. I think the way we did it is that we had to put it under a different name...ex: 10,000 from mom, 10,000 from dad, etc..

heidla Posted: Apr 27, 2004 05:41 PM

Re: If you received $ as a gift from family towards your house - question

They had to sign a gift letter and prove that they had the money and had not taken out a loan.

DecBride04 Posted: Apr 28, 2004 07:36 PM

Re: If you received $ as a gift from family towards your house - question

Do both, becuase this happened to us with a gift from my mother. After my mother wrote a letter saying it was a gift from her, they wanted to then at that point want to see her bank statements of where the money came from.... it was nuts!