Monday, December 14, 2020

The Gift of Home! And it's tax free...

 



December is not only when we give gifts to our loved-ones for the holidays but it's also the time to review tax-saving options for 2020 and plan for 2021 and what could be a better gift than tax-free help with a down-payment for a new home?

Parents, grandparents, aunts and uncles, and even friends can start to pass along/gifting their estates while reducing inheritance taxes and getting to see their family enjoy the benefits of their gift. It can also be used by adult children to help their parents purchase a new home. 

Under current IRS guidelines (please consult your accountant for tax advice and ramifications) each 
parent or relative can give up to $15,000 to each child or relative every year. That would mean that a mother and father can each give $15,000 a year to each son, daughter, and/or grandchild that would amount to $30,000 a year in total per couple for each person that you gift. 

If both sets of parents want to help with the down-payment on a house; each of the parents can give each borrower a gift of $15,000 per year. That would add up to $60,000 for both of you! That is a significant amount of tax-free money to help you buy a home for your family! Of course, a gift can also be less than $15,000, so give what you can.

That amount is per calendar year and not based on every twelve months. That would mean that they could give $60,000 (or more) in December 2020 and an additional $60,000 (or more) in January 2021.

With less than one-month left , this is the time to bring up the subject with your family. What could make them happier than helping you buy a house and saving money on taxes?

For most types of mortgage loans, you will need to have 5% of the amount of the down-payment on your own, however, there are exceptions. To find out the exceptions and details about how gift money can be applied to your down-payment contact a reputable mortgage broker.

More about tax-free gifts and life-time limits: IRS Announces Higher Estate And Gift Tax Limits For 2020
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About the author: Marilyn Messenger, a licensed real estate broker, Certified Residential Specialist, and Accredited Buyer Representative, and Certified Luxury Homes Marketing Specialist is associated with Andrew Mitchell and Company in Concord has been representing home buyers and sellers in Wayland, Sudbury, Maynard, Stow, and Concord MA since 1993. www.MarilynMessenger.com for more. Visit www.marilynmessenger.com to see homes for sale, get the latest real estate market reports, and learn about having your own buyer agent on your side. 
 
Nationally, the median list price has gone up 10.8% over last year. While national data is interesting, all real estate is local and you may be surprised!

Here is the link to my latest market reports for Concord, Sudbury, Wayland, Maynard and Stow including current price trends, July and August sales, year-over-year, and 12 month activity. It is interesting to see how current pricing compares to actual closed sale prices in each town.


Contact me anytime for information about specific properties or town.


Thanks to Mark Imperial for asking me talk about the real estate market in the Concord MA area west of Boston.



 #RealEstate #RealEstateNews #SudburyMA #Concord #Wayland #Stow #Maynard #homesforsale #homebuying #homeselling #Realtor #MarilynMessenger #Boston #realestatemarket

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