If the state is like Federal, do they not count amounts over the "free" gift as something taxed either not or when you pass? If not, that's a giant loophole. Say a Billionaire wants to pass his money for free. He gives Billions as gifts now and thinks nobody taxes that gift. I don't think that's the case.
The first question in my head was: "If the kids can't afford a house without your $1M gift, they can't afford a house". The gift only gets the initial purchase. It wouldn't be a surprise if after a couple years of property taxes, they lose the house anyways. I would think staying under the "free" gifting would give them a boost but they still get a mortgage on their own. One of my sons is looking in a lower cost area than where we live for a house but hasn't even considered buying yet because where we are, a house costs $1k a month plus the mortgage. We know that's the case because FIL passed and we're keeping that house up as we prepare to sell it. If you're a couple and each kid is a couple, you can gift each of the couple the tax free max from each of you, so 4 times. No, it's not a million dollars, but who buys their first house with a million dollars towards it?
The first question in my head was: "If the kids can't afford a house without your $1M gift, they can't afford a house". The gift only gets the initial purchase. It wouldn't be a surprise if after a couple years of property taxes, they lose the house anyways. I would think staying under the "free" gifting would give them a boost but they still get a mortgage on their own. One of my sons is looking in a lower cost area than where we live for a house but hasn't even considered buying yet because where we are, a house costs $1k a month plus the mortgage. We know that's the case because FIL passed and we're keeping that house up as we prepare to sell it. If you're a couple and each kid is a couple, you can gift each of the couple the tax free max from each of you, so 4 times. No, it's not a million dollars, but who buys their first house with a million dollars towards it?
Statistics: Posted by Jack FFR1846 — Sun Nov 17, 2024 6:45 am — Replies 4 — Views 489