Question: My parents are really excited for my wife and I to buy a house, as is my grandmother. So much so that between them they’d like to give us $30K to help with a down payment. Would this gift become “income” and therefore be subject to taxes? If so, are there any clever ways to make this money non-taxable? Thanks! David, Walla Walla WA
Answer: There’s no need to be clever. In 2008 you can gift up to $12,000 to a person without paying taxes on it. Your parents and your grandmother could gift you $12,000 each for a total of $36,000 without tax consequences. They could double that sum by gifting the same amount to your wife.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
