Do Patrons Have to Report Home Purchase Gift Money to the IRS?

January 10, 2025

Orange County Register, Jan. 10, 2025-Jeff Lazerson
Just about every time a benefactor provides gift funds for a home purchase, two questions come up.
Do I have to report the gift to the Internal Revenue Service?
Do I have to pay tax on the gift?
The short answer for Question 1 is yes, in most cases you are supposed to report the gift. For Question 2, contributors likely don’t have to pay tax unless they are very, very wealthy.
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