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Personal Finance (Not Investing) • gift to kids to get homes

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?

Statistics: Posted by Jack FFR1846 — Sun Nov 17, 2024 6:45 am — Replies 4 — Views 489



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