Redirecting to cart, please wait...
You have items(s) in your cart.
My wife and I are green card holders. Our parents are sending us money to purchase a home. Is this money taxable?
If your parents sent the money as a gift, it is not taxable. Likewise, if they sent the money as a loan, it also is not taxable. Any interest you paid to your parents on the loan, however, would not be deductible on your taxes as it is considered a personal loan.
Although the gift or loan is not taxable, you may need to report the amount. If the funds advanced are in excess of $100,000, you must file a Form 3520 with your income tax return. You also would need to report any interest you receive on such funds on your income tax return.
Jamshed Gandi, CPA / CFP / CVA, is a stockholder in the firm of RINA Accountancy Corp. in San Francisco. You can reach him at (415) 777-4488.
Have a question for a CPA. Ask it here.