The gift tax question that stops families who would never owe it
The single most common reason a parent does not help is a belief that writing a large check creates a tax bill. It is the first thing people ask about and the first thing that stops them.
The federal rules include an annual amount you can give any one person without filing anything at all, and separately a lifetime amount that reaches into the millions before any tax is actually owed. Between the two, the overwhelming majority of families helping a child buy a home will never owe federal gift tax.
Reported is not the same as taxed
This is the distinction that does most of the work. Some gifts require a form. Requiring a form is not the same thing as owing money, and the two get collapsed in most kitchen table conversations.
We are deliberately not printing the current figures here, because they change and because the person who should give them to you is a CPA looking at your situation. Khinh Hoang covers the current numbers on the night and takes questions afterward.
The question underneath the question
Once a family gets past the fear, the better question shows up: where should the money come from? Cash, a retirement account, and appreciated stock each cost a different amount after tax. That difference is usually bigger than the interest rate everybody was arguing about.
For informational purposes only. SPG is not a tax, legal, or financial advisor. Consult your own counsel before acting.
The whole list, in one hour, on August 27
Forty ways, twelve covered in depth on stage, and a broker, a lender, a CPA, and a trusts and probate attorney answering questions from the room. Free, in Folsom.