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Hi all, my girlfriend's parent is planning to sell their Coop(worth about $200K) and gifting the money for her first home purchase as down payment.  When I bought my coop back then I had seen the seller asking me to make check payable directly to other parties and I did it.  It's a pain in the neck here to deal with the Coop board to transfer the property to her first and then sell it under her name.  Is it possible to gift her the money at closing without check being cashed in her parent's account? What are the tax implications? Would the money be taxable? Is it common to ask the buyer to cut the check payable to her directly? Thank you 

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what real estate can you buy in NYC for 200K!??!?! A chicken coop?

lol. the property is located in the suburb of the city.

rufflesinc said:   what real estate can you buy in NYC for 200K!??!?! A chicken coop?

You could actually get a place under 20k - Mitchell Lama coops. But there are income restrictions.

When I bought a house (NYC), I had to get like 3-4 different checks for different parties. Don't see a problem, ask a lawyer. 

freebirdy said:   When I bought a house (NYC), I had to get like 3-4 different checks for different parties. Don't see a problem, ask a lawyer. 
  I think that that part should be ok. but we are worried about the tax implications from the indirect gifting.

davidbeckham said:   Hi all, my girlfriend's parent is planning to sell their Coop(worth about $200K) and gifting the money for her first home purchase as down payment.  When I bought my coop back then I had seen the seller asking me to make check payable directly to other parties and I did it.  It's a pain in the neck here to deal with the Coop board to transfer the property to her first and then sell it under her name.  Is it possible to gift her the money at closing without check being cashed in her parent's account? What are the tax implications? Would the money be taxable? Is it common to ask the buyer to cut the check payable to her directly? Thank you 
  There is no effect on taxes due - they're still selling their house, and still gifting you the proceeds.  

Glitch99 said:   
davidbeckham said:   Hi all, my girlfriend's parent is planning to sell their Coop(worth about $200K) and gifting the money for her first home purchase as down payment.  When I bought my coop back then I had seen the seller asking me to make check payable directly to other parties and I did it.  It's a pain in the neck here to deal with the Coop board to transfer the property to her first and then sell it under her name.  Is it possible to gift her the money at closing without check being cashed in her parent's account? What are the tax implications? Would the money be taxable? Is it common to ask the buyer to cut the check payable to her directly? Thank you 
  There is no effect on taxes due - they're still selling their house, and still gifting you the proceeds.  

  who would be responsible for the taxes? It's technically not house but a coop in which they own the shares of a company.  So does the clause of the $250,000/$500,000 home sale tax exclusion apply? What about gifting/transfering those coop shares?TIA

davidbeckham said:   Hi all, my girlfriend's parent is planning to sell their Coop(worth about $200K) and gifting the money for her first home purchase as down payment.  
  Won't girlfriend will pay taxes on anything over $14,000 per year received as a gift?

atikovi said:   
davidbeckham said:   Hi all, my girlfriend's parent is planning to sell their Coop(worth about $200K) and gifting the money for her first home purchase as down payment.  
  Won't girlfriend will pay taxes on anything over $14,000 per year received as a gift?

  That's not how the gift tax exclusion works.....  Anything over 14000 is not "taxed" (and never by the receiver), but must be counted against the gifter's estate tax exemption amount.  it's only taxed (for the gifter) if/when they exceed the estate tax exemption amount ($5.45 million per person in 2016).

atikovi said:   
davidbeckham said:   Hi all, my girlfriend's parent is planning to sell their Coop(worth about $200K) and gifting the money for her first home purchase as down payment.  
  Won't girlfriend will pay taxes on anything over $14,000 per year received as a gift?

  With respect to gift taxes, mom and dad can each use $14,000 gift tax exclusion ($28,000 total, or $56,000 if they were to also gift money to OP). Anything beyond that will reduce their lifetime gift tax exclusion -- which should only be a problem if the parents expect to gift (beyond annual exemptions, or leave an estate in excess of at least $5.45 million/person.

ETA Bend3r beat me to it.

pics? sounds like a keeper



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