| Author | Message | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 557 Registered: 5-2001 |
Thanks Ben...for anyone going down this road, Washington Mutual has been terrific (literally everyone we've been talking to have used/recommended them). | ||
| Ben Cannon (Artherd)
Intermediate Member Username: Artherd Post Number: 1113 Registered: 6-2002 |
Chris- Your parents can 'loan' you 100k for 30 years at blah percent. Then you pay say $1,000/mo with intrest, or $12k/yr. Your parents then 'gift' you $6k/year EACH. :D) Best! Ben | ||
| Ryan Alexander (Ryalex)
Junior Member Username: Ryalex Post Number: 156 Registered: 8-2003 |
Heaven forbid wealth stay in a family! Your children and grandchildren deserve none of the benefits of your hard work! It will be given to the government, whose gentle care will 'redistribute' it to the needy! re�dis�tri�bute : verb; to piss away, waste or squander, esp. by a third party or government; see also: fairness, equality, communism. | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 555 Registered: 5-2001 |
Lol - we've been on the phone all day with accountants, etc. and think we have it figured out, but it never hurts ask the sage aggregate minds of F-chat  | ||
| William H (Countachxx)
Advanced Member Username: Countachxx Post Number: 3387 Registered: 2-2001 |
My advice is move out of CA | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 554 Registered: 5-2001 |
Excellent - many thanks to all! I really appreciate it. We were just on the phone investigating exactly what Jim, Dale, and Tom were suggesting. I think that's our best bet. Thanks as well for the link Ty ~C | ||
| ty (360mode)
Junior Member Username: 360mode Post Number: 240 Registered: 9-2002 |
http://law.freeadvice.com/tax_law/gift_tax_law/ has some good general info and links to state statutes, fwiw... | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 486 Registered: 4-2003 |
Hey, you gotta go a long ways fore you as twisted as the good doctor, ha! | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 4433 Registered: 9-2001 |
hey Dr Tax and I have the same twisted mind I | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 485 Registered: 4-2003 |
Chris, I don't know squat around CA laws. What Jim sez will definitly work for IRS purposes. However, Jim's idea of treating the money as a loan should work until you have the time to figure out sometime better. But under this idea, at a minimum, the parents can gift interest and prinicple each year until the loan is wiped out. On another note, though. Be careful if you are also borrowing money from a third-party mortgage lender. Failing to disclose the loan or gift from the parents could get you into all kinds of trouble should you ever run into trouble with paying your mortgage. Good luck! Dale | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 4432 Registered: 9-2001 |
are you talking about State tax or Fed, I think Jim is referring to the Fed rules. I would think the best way to do it is have them lend you the 100k as a loan with a fair interest rate - there are IRS regs on this, then each year they gift you the interest, the amount will be under the annual threshold, problem solved - check with your CPA | ||
| ty (360mode)
Junior Member Username: 360mode Post Number: 238 Registered: 9-2002 |
anyone can gift anyone 11k a year. use your imagination just my opinion of course, i'm not a tax lawyer or accountant! | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 2031 Registered: 7-2002 |
you could put it in a trust with you all as the beneficiaries and executors of it. the trust can then make a "loan" to you or something like that......I think..... | ||
| James Glickenhaus (Napolis)
Advanced Member Username: Napolis Post Number: 2873 Registered: 10-2002 |
If I'm correct that's 88k tax free. I also believe they can loan you the rest as long as it's set up properly and you pay a fair interest which is prob less than a morgage. ONCE AGAIN check with your accountant. | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 553 Registered: 5-2001 |
Thanks James The problem is, the amount is closer to 100K...we have a mtg. with the mortgage broker this afternoon and we have a call into her mom's accountant, but don't know if we'll be able to talk to them today (vaca) ~C | ||
| James Glickenhaus (Napolis)
Advanced Member Username: Napolis Post Number: 2871 Registered: 10-2002 |
I'm not an accountant but I believe each of her parents can give each of you 11K (Total to both of you 44k) this year and the same amount after jan 1 (another 44K) Check with your accountant. | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 550 Registered: 5-2001 |
Hi All, We're in the midst of putting an offer on a home in CA and wanted to get your advice. My fiancee's parents just sold the home of her grandmother who recently passed away, and want to put some of the money toward helping us with our first home. Problem is, we're discovering, that the gift tax in CA is on anything above 10K and the Gov. takes 40%!!!!!! after that. It's completely insane. Are there any options or ways around this? Could it be a "loan" of some sort? Also, another option might be to have her mother on the loan with us, but we'd get a higher interest rate  Any advice or suggestions would be MUCH appreciated! Thanks! ~C |