Credit on Taxes -

Financing, Hard Money Lenders, Private Money
1

Not sure if this is the correct forum to post this question or not.

I am in the process of selling my a condo that I own to a family member. They really would like to buy the property and I REALLY would like to sell. The problem is that they have no money and need financing.

The bank says that they need to have 10% downpayment (which they don’t have).For buying the property i also offered to give my family member a bonus of 2k for taking the headache property off my hands.

So in a nutshell my relative will be getting 10% of purchase price + 2k bonus. (i paid him the 10% of purchase price through a third party (another relative) and they signed a paper saying this was a gift that they provided to the first relative)

All i want is to make sure that I am credit on my taxes for the (10% + 2k bonus that I gave him). How can i do this?

I am thinking that i have to do something with the HUD at closing. Any suggestions are greatly appreciated.

2

villumanati… while I’m not a tax attorney, it is my understanding that you can gift a certain amount to individual family members each year without THEM having to pay income taxes on it, but it is not tax deductible on your end.

Maybe a better route would be to set-up a note for them to pay back…

3

I believe the gift amount maximum is 12K. You can look it up on www.irs.gov. Hope this helps.

4

In 2009, the annual gift tax exclusion is $13K

The recipient of a gift never pays income tax on a gift regardless of the gift amount. It is the giver that incurs a gift tax liability for amounts in excess of the gift tax exclusion.