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Subject:  First-time home-buying question Date:  6/2/2003  8:08 PM
Author:  5000fingers Number:  65647 of 127513

My girlfriend's father is "giving" her $50,000 as a 20% down payment on a home. I use quotations not to call to question his generosity, which is sincere enough, but to note that he is going to be on the title and will expect to receive benefits such as appreciation at the time of sale. Yet he is doing it for her benefit, and he wrote her a check for the entire amount for her to use as the down payment and closing costs. He won't be either on the mortgage or on the title at first, but after the close he will be put on the title, or at least that's the plan.

Of course we are aware of the impending property taxes, and the deduction for the interest payments on her income taxes. Are there any other tax consequences here beyond these two considerations? Will there be a gift tax of some sort on the $50K?
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