From the WSJ – an excerpt:

Hitting your parents up for cash can be awkward. But sometimes the best money move is to ask for help.

Take comfort that you aren’t the only one asking. About 68% of parents of adult children have made or are currently making a financial sacrifice to help their kids financially, according to a recent Bankrate survey. And 38% of home buyers under age 30 received help with the down payment from their parents, according to a survey this spring by Redfin.

Tax rules for gifts can be complicated, but unless it is a big gift, there is nothing for the giver to worry about. Recipients generally don’t owe income taxes on gifts.

An individual can give an unlimited number of people gifts up to $17,000 each for 2023 with no federal gift or estate-tax consequences. That jumps to $18,000 for 2024. Givers must report larger gifts on a federal gift-tax return, but there is no tax due until lifetime gifts exceed $12.92 million ($13.61 million for 2024).

Read the full article here:

Link to WSJ free article

Pin It on Pinterest