RealEstateRaves

They say it takes a village….absolutely.  Our world is too complicated and we can’t do it all on our own.  Thanks Elizabeth Everitt of Princeton Capital www.princetoncap.com for your great suggestions how  parents like us can help our children buy a home.

There are lots of options for parents to help their kids.  Standard gift rules allow each parent to give without tax consequences $11,000 each year.  So, if you gave much needed capital to your son or daughter in November you could give another gift on January 1st as well.  Gifting is based on a calendar year.  This rule applies to an “unlimited” number of recipients so the same amount above could also be gifted to a son or daughter-in-law.

Another thought, everyone has a lifetime exemption of $1,000,000.  That means each parent can give up to $1,000,000 as a gift anytime they wish without tax consequences.  The gift amount however is deducted from this lifetime limit reducing the tax emption when a donor dies.  But it’s still a great resource to help a child in need while the parent/donor is alive and able to enjoy the happiness a gift like this brings.

Before acting on anything in this post contact your CPA, or legal counsel for personal advice.

Joe Parsons

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