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Do I have to pay taxes on money gifts?

We bought a house this year. We brought 56k cash to the table to buy a house. My mother in law came to the closing with the other 40k in cash to help us buy the house in cash so we didnt have to get a loan.
Do we have to pay taxes on that 40k? It's a personal loan that we must pay back. Is there some sort of gift tax even though the money was never in our hands- my mother in law literally got a money order from the bank and brought it to the closing so we could buy our house in cash.

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Anonymous

Asked by Anonymous at 6:58 PM on Feb. 8, 2010 in Money & Work

Answers (4)
  • Nope you don't have to it was a loan, and you don't pay taxes on loaned money.
    truealaskanmom

    Answer by truealaskanmom at 6:59 PM on Feb. 8, 2010

  • gift - yes

    but in your description you say it is a loan - so no.

    Anonymous

    Answer by Anonymous at 7:01 PM on Feb. 8, 2010

  • *details*
    well she gave it to us as a loan- there is no paperwork on it, but we are definitely required to pay her back. We are making monthly payments to her and we plan on using our 8k from the first time homebuyer credit to pay a big chunk of it back.
    Anonymous

    Answer by Anonymous at 7:03 PM on Feb. 8, 2010

  • Only if one person gives you more than $12,000 in a calendar year.

    If you are paying interest, the person who loaned you the money must declare the interest as income.
    rkoloms

    Answer by rkoloms at 7:32 PM on Feb. 8, 2010

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