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My wife and I are building a much more expensive house. My parents want to help us with the downpayment, and we want to put down as much as possible at closing. Can my parents give us $50,000 toward the downpayment or can they not because that's more than the $11,000 gift tax amount? If my parents gave us $50,000 toward the house, would they have to pay a gift tax and when would they pay it? They also want to fund my kids' college funds as well; is the limit the same for that and should they do that in a separate year or is it okay to do it in the same year? If there is a tax and if it is paid years later, do they have to keep records on it or does the IRS already know and thus calculate it for them? Thanks.
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