Question I am talking with my aunt and uncle regarding a possible gift to use as a down payment for my move up house. I am trying to understand the federal gift tax regulations regarding that. I understand about the $14,000 gift tax free limit per donor. My question is how should the mechanics work specifically if receiving a gift from both my aunt and uncle separately? Do I need 2 separate gift letters? Do the funds needs to come from separate accounts with only the Aunts name and only the Uncleís name or can they can come the same joint account? Is it important that they process this as 2 separate transactions of $14k each?
Answer Hi John, thank you for your inquiry.
The mechanics of the loan will depend on your specific loan transaction and should be handled by your loan officer. However, if you are receiving 2 separate gifts, you will need 2 separate gift letters. In regard to the bank accounts, you should be able to have both gifts come from the same account, however, this should be addressed by your loan officer who will be more familiar with the specifics of your loan. The $14K each is a tax issue, not a loan issue, and should be discussed with an accountant. Each lender may have a specific way in which they want the gift(s) handled. I hope that was helpful.
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