iamhomin

Hey fellas,

I was wondering about some tax consequences if I were to receive money from my immediate family. Say that my brother sold his house for $200K that he lived in for more than two years and is willing to give me $200K to buy my own house- would that be taxable income on my part?

I know that my "brother" can exclude the gain since he lived in the house as a primary resident for more than the required two year amount, but what about if the money were to transfer to me?

I tried googling, but couldn't find the answer.

Any CPAs out here?

TIA.

CBPType-S08

You would not pay any tax. Your brother would have to file a gift tax return. Depending on his lifetime gifting, he may or may not have to pay tax on the gift.

CBPType-S08

and you are correct, your brother can exclude any gain up to $250k or $500k if married and filing a joint return on the sale of his home assuming it was his primary residence for 2 of the last 5 years and he has not excluded another gain in the past 2 years.

yunginTL

i thought over 12k the person receiving the money would pay tax on the gift?

TS_eXpeed

Well being that he has lived in it for over two years and he wouldn't have any taxes on it, you can have him buy your new house and than 'gift' it to you. lol

CBPType-S08

Nope...the person receiving the gift does not pay tax. The gift tax return is filed by the person giving the gift

CBPType-S08

Let me think about that one....NO

TS_eXpeed

Just a thought

iamhomin

Haha, a bit late, but appreciate the replies.