Tax implications & large cash gift for down payment?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
KlangFool
Posts: 19021
Joined: Sat Oct 11, 2008 12:35 pm

Re: Tax implications & large cash gift for down payment?

Post by KlangFool »

smitcat wrote: Mon Jan 27, 2020 3:01 pm
Do you buy the new townhome which puts you in the same situation as you were before the fire?
If you do you have then paid 4X your income for the townhome.
If you don't why are you living in that area now?
smitcat,

No, I do not buy the new townhouse.

<<If you don't why are you living in that area now?>>

1) I might move before the house burns down.

2) My kids had grown up and moved away. The neighborhood factor in raising my kids no longer matters.

KlangFool
smitcat
Posts: 6953
Joined: Mon Nov 07, 2016 10:51 am

Re: Tax implications & large cash gift for down payment?

Post by smitcat »

KlangFool wrote: Mon Jan 27, 2020 3:08 pm
smitcat wrote: Mon Jan 27, 2020 3:01 pm
Do you buy the new townhome which puts you in the same situation as you were before the fire?
If you do you have then paid 4X your income for the townhome.
If you don't why are you living in that area now?
smitcat,

No, I do not buy the new townhouse.

<<If you don't why are you living in that area now?>>

1) I might move before the house burns down.

2) My kids had grown up and moved away. The neighborhood factor in raising my kids no longer matters.

KlangFool
I am gong to surmise that you have never been in an area where the values have gone up swiftly.
That would be the only reason why you don't want to answer questions like these.
When we think about various situations we learn ….
Dottie57
Posts: 9543
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Tax implications & large cash gift for down payment?

Post by Dottie57 »

rage_phish wrote: Mon Jan 27, 2020 3:05 pm
Dottie57 wrote: Mon Jan 27, 2020 2:39 pm
rage_phish wrote: Sun Jan 26, 2020 2:01 pm I disagree

He has been insanely generous with us the entire time I have known him. And it has never been an issue

He is just well off and enjoys sharing that with his daughters and their families
It isn’t just the house payment you need to pay. There will be increased property taxes, an probably increase expenses in utility, maintenance etc.

Good luck with what you choose to do.

Yup we are aware

And the tax is issue thing we have already worked out

I don’t see a big change in utilities. We currently live in a very un-energy efficient home that bleeds heat and cold and are looking at homes that are not massively larger (1 more bedroom so I no longer have my home office in the laundry room and ideally another half bath)

We already have a large lot with Gardner and won’t be getting a bigger lot I’m sure. House keeping may go up a bit?
Just be aware that maintenance people may charge more in expensive neighborhoods. Strange but often true.
Topic Author
rage_phish
Posts: 195
Joined: Thu Jan 31, 2019 4:27 pm

Re: Tax implications & large cash gift for down payment?

Post by rage_phish »

We will be keeping the same Gardner, house cleaner and handy man, and my own uncle is a contractor for any big projects needed. But yes, we are aware of that as well
KlangFool
Posts: 19021
Joined: Sat Oct 11, 2008 12:35 pm

Re: Tax implications & large cash gift for down payment?

Post by KlangFool »

smitcat wrote: Mon Jan 27, 2020 3:12 pm
KlangFool wrote: Mon Jan 27, 2020 3:08 pm
smitcat wrote: Mon Jan 27, 2020 3:01 pm
Do you buy the new townhome which puts you in the same situation as you were before the fire?
If you do you have then paid 4X your income for the townhome.
If you don't why are you living in that area now?
smitcat,

No, I do not buy the new townhouse.

<<If you don't why are you living in that area now?>>

1) I might move before the house burns down.

2) My kids had grown up and moved away. The neighborhood factor in raising my kids no longer matters.

KlangFool
I am gong to surmise that you have never been in an area where the values have gone up swiftly.
That would be the only reason why you don't want to answer questions like these.
When we think about various situations we learn ….
smitcat,

<<I am gong to surmise that you have never been in an area where the values have gone up swiftly.>>

Do you consider places where the house's price double or triple in one or two years as gone up swiftly? Please note that the house price in Asia had been a lot crazier than the USA especially before the Asian Currency Crisis. And, I lived in Asia during the Asian Currency Crisis.

KlangFool
Starper
Posts: 123
Joined: Sun Oct 26, 2014 10:02 pm

Re: Tax implications & large cash gift for down payment?

Post by Starper »

I agree with many of the posters. Just say no to the gift. These posters are wise so they know what's good for you.

Untreated question, can your father in law give me 600k by any chance?
corysold
Posts: 912
Joined: Mon Mar 24, 2014 12:58 pm

Re: Tax implications & large cash gift for down payment?

Post by corysold »

FWIW, we live with my MIL, who paid a portion of the downpayment for the house. We live in a very nice area that we could not otherwise afford.

I don't feel poor.

My kids watch YouTube. They aren't impressed by our neighbor's BMW's, Mercedes and LandRovers. On YouTube, rich people have "Lambo's" and walk around giving around $10,000 to strangers.

They have never received $10,000 from a neighbor and no one drives a Lamborghini. To them our neighbors aren't rich.

My point being, I think kids believe what you teach them to believe. To them, they aren't any different than their neighbors because the neighbor kids' parents drive a nice car than we do and take vacations we can't afford.

Most of our neighbors are extremely caring. A few are not. Having money doesn't make them pretentious, it just gives them more ways to show it.

TL DR, I'd move to the nice neighborhood if I were you OP.
wrongfunds
Posts: 2334
Joined: Tue Dec 21, 2010 3:55 pm

Re: Tax implications & large cash gift for down payment?

Post by wrongfunds »

rage_phish wrote: Mon Jan 27, 2020 3:38 pm We will be keeping the same Gardner, house cleaner and handy man, and my own uncle is a contractor for any big projects needed. But yes, we are aware of that as well
Is anybody still calling OP "poor"? What does it take for a BH to be considered NOT poor? A butler? Live-in nanny??
smitcat
Posts: 6953
Joined: Mon Nov 07, 2016 10:51 am

Re: Tax implications & large cash gift for down payment?

Post by smitcat »

KlangFool wrote: Mon Jan 27, 2020 3:40 pm
smitcat wrote: Mon Jan 27, 2020 3:12 pm
KlangFool wrote: Mon Jan 27, 2020 3:08 pm
smitcat wrote: Mon Jan 27, 2020 3:01 pm
Do you buy the new townhome which puts you in the same situation as you were before the fire?
If you do you have then paid 4X your income for the townhome.
If you don't why are you living in that area now?
smitcat,

No, I do not buy the new townhouse.

<<If you don't why are you living in that area now?>>

1) I might move before the house burns down.

2) My kids had grown up and moved away. The neighborhood factor in raising my kids no longer matters.

KlangFool
I am gong to surmise that you have never been in an area where the values have gone up swiftly.
That would be the only reason why you don't want to answer questions like these.
When we think about various situations we learn ….
smitcat,

<<I am gong to surmise that you have never been in an area where the values have gone up swiftly.>>

Do you consider places where the house's price double or triple in one or two years as gone up swiftly? Please note that the house price in Asia had been a lot crazier than the USA especially before the Asian Currency Crisis. And, I lived in Asia during the Asian Currency Crisis.

KlangFool
No one ever said one or two years - still not interested in answering the real questions.
You can always reply with ridiculous responses such as... " I would sell before a fire".
There is no reason to discuss some issues with you. Some you have great insight and sound advice - others your responses appear ridged and read out of a book word for word whether they apply to another's situation or not.
niceguy7376
Posts: 2828
Joined: Wed Jul 10, 2013 2:59 pm
Location: Metro ATL

Re: Tax implications & large cash gift for down payment?

Post by niceguy7376 »

wrongfunds wrote: Mon Jan 27, 2020 4:07 pm
rage_phish wrote: Mon Jan 27, 2020 3:38 pm We will be keeping the same Gardner, house cleaner and handy man, and my own uncle is a contractor for any big projects needed. But yes, we are aware of that as well
Is anybody still calling OP "poor"? What does it take for a BH to be considered NOT poor? A butler? Live-in nanny??
When they have a Gardener

Is a gardener the same as lawn maintenance guy?
Topic Author
rage_phish
Posts: 195
Joined: Thu Jan 31, 2019 4:27 pm

Re: Tax implications & large cash gift for down payment?

Post by rage_phish »

No not really I don’t think

It’s a guy who comes weekly and nows and blows and takes and what not
WildCat48
Posts: 62
Joined: Sun Jul 16, 2017 8:28 pm

Re: Tax implications & large cash gift for down payment?

Post by WildCat48 »

123 wrote: Sun Jan 26, 2020 1:59 pm This is a strong indication that he wants to retain control over your household and encourage dependency on him. This is a fatal strike at your future sense of independence and self-achievement.

"Free money" generally costs you the most. Money received as an inheritance comes without strings.
Or.....he could just be a cool dad....
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