Are there gift tax if i give 200 000 to my son for his down payment ?

Natalya
I have paid off my house and recently refinance for a $200, 000 loan. I want to give the money I've borrowed to my son for his house down payment. Do any of us have to pay gift tax?

Anibal
I think the answer already given is slightly out of date. From memory, the annual gift tax exemption is $12, 000 each (so $12, 000 from you, another $12, 000 from your spouse.)In addition, gift tax is not a simple topic - you do not automatically pay tax if you go over the $12, 000 gift - it eats into your lifetime exemption amount of $1m. So, you probably won't have to pay gift taxes, but I expect you would need to file a gift tax return

Etta
As with most tax-related questions, the answer is "maybe." (For instance, the gift rules are fuzzy-enough such that the donor is generally responsible for paying the gift tax. However, under special arrangements the donee may agree to pay the tax instead.)This is an area where (especially, with the amount of $$ you're talking about) you ought to seek out the services of a professional.Here is information that will guide you: http://www.irs.gov/businesses/small/arti… http://www.irs.gov/newsroom/article/0,, i…

Brenna
Yes, as you can only give him $10, 000 tax free. He will have to pay taxes on $190, 000, assuming you are single. If not, your spouse can give him another $10, 000. If your son is married, you can each gift another $10, 000 a piece to his spouse.