Monetary gift to son that is tax deductible
I’m retired . I would like to give my son $7000 gift to help him with down payment for a condo. I understand it can favor me tax-wise. However how can I show or prove it is a gift for my son? For example would writing a check be ok? Thanks
Terry Says
There is no tax benefit to giving money to your son — only the good feeling that comes from giving him his start in the housing market. You are allowed under law to give up to $18,000 per year to ANYONE without any tax consequences. So neither of you has a tax benefit from this gift. He may, however, have to disclose that this portion of his down payment is a gift –unless you make the gift now and he doesn’t buy the condo for a few months, keepign the money in a money market account in his name.
