Home Equity Gift
UPDATED: Oct 1, 2022
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Home Equity Gift
My Aunt and Uncle are gifting me 60,000 in home equity so I don’t have to put a
down payment. Will they be taxed at year end for the gift of equity?
Asked on May 20, 2019 under Real Estate Law, Pennsylvania
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
Yes, they will be--it's a gift, as you write: they are giving you $60,000 of value. Gifts do not need to be cash per se: anything of a readily determinable value is a gift and can be taxed. The gift tax exclusion (amount of a gift not taxed) is $15,000 annually per person in 2019: they can only give one person (e.g. you) up to $15,000 in the year without incurring a tax liablilty.
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