Beware of Down Payment Gift-Giving Rules - Last year, 27% of first-time home buyers received a financial gift from relatives or friends that they applied toward a down payment on a new home — up from 22% in 2009, according to data from the NAR. It's important to follow the IRS and banks’ gift-giving rules, including:
1. Home owners still need to come up with at least some of the down payment on their own.
2. You may need to document where the down payment money came from.
3. If you’ve had the gift for a long time, you likely won’t need to document it. If the gift has been in your bank account for three months or longer, it’s considered “seasoned”.
Read article:
http://realtormag.realtor.org/daily-news/2011/12/20/beware-down-payment-gift-giving-rules
No comments:
Post a Comment