False: Technically no. According to federal tax law, an person can only give up to $13,000 per person or $26,000 per couple each year. One of the biggest hurdles in owning a home is the initial down payment up to 20% of the purchase price of the property, unless the buyer goes FHA, USDA, or VA with under 5% down payment required.
A few ways someone can give money without being considered a gift would be:
- pay down other loans such as tuition or car payments, so the buyer has more money to save up front. Education and medical loans are not taxable as they are given directly to the institution.
- lend money to the borrower and have them pay interest until it is forgiven
If you need a local real estate agent in the Hollister, San Juan, Aromas, Gilroy, Salinas, Monterey, or other area, please contact Kristen Jurevich at 831.635.6719