Updated over 9 years ago on . Most recent reply
Tax Paid on Gift (Private) Money
Hi everyone,
My in-laws are gifting money to my wife and I toward the down payment on our first home. From what I've read, it's best to let those funds sit in our account for about two months to show that it is indeed ours and to avoid a gift tax. My question is more about the tax implications from receiving those funds. How would it impact my wife and I or her parents? I'm trying to learn the best way to do this transfer that is beneficial to both my wife and I and her parents. I'd like to avoid having her parents provide their own bank statements (to prove origin of the funds in question) or take any tax hit because of their generosity.
If I have any misunderstandings about the process, please let me know. Any input or advice is appreciated. Thanks.