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Financial Planning / Tax Strategies
|Subject: Re: Buying Second House for Parents||Date: 10/22/2013 1:58 PM|
|Author: JLC||Number: 119386 of 121572|
, but if you own the house and your parents live ther without paying rent (or below free market rent), consider whether there is potential gift tax issue lurking in the weeds.
Hadn't thought of that, but seem to have an answer here.
As long as the rent is below the gift tax exclusion, it seems we are good. So DW & I could combine are $14k gift to make it $28k, I think that is more than that rent this place could command. Push comes to shove, $28k to dad and $28k to mom makes for $56k total, plenty of breathing room.
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