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Subject:  Re: Capital Gaines on sale of house Date:  10/9/2001  7:38 PM
Author:  Charlie48K Number:  54492 of 127637

The mortgage broker said this "gift" was for $5,700.00... So it doesn't sound like I have to worry about paying any kind of gift tax... I stand to clear about $20,000.00, so I'm well under any of the big limits. Is this exclusion from gains a one time shot if you are under the limit (assuming you meet the residency requirements mentioned in the other posts)?

You can gift $10,000 per person per year. That's $20,000 for two, etc. if they're a couple buying the home. You can do it each year. Over that you aren't taxed until you get above $670,000 (I think that's the limit this year, everything chanfges with the new tax law.) You won't have a gift tax problem, but I think the IRS will consider the gift a sham transaction. Since it's part of the contract, your sale price is the contract price minus the gift. If it's not in the contract, you may be participating a fraud against the lender. Don't you have a broker representing you? If not, get a lawyer fast.
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