Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

July 27th, 2009

Two Tips for Carlsbad Parents Buying Homes for Children

Categories: Buyers, Home Loans, Interest Rates

Carlsbad, CA – With Carlsbad and La Costa home prices low, now many parents are thinking of buying their children a home or investment property. If you are considering this type of gift, please be mindful of the tax consequences.

1. Give a cash gift. Although some parents want to (and can afford to) purchase a house for their children, many want to help but are not in the position to gift the entire cost of the home. Parents are allowed to gift up to $13,000 per person per year without incurring gift tax. This means two parents could give their child and spouse up to $52,000 per year to go toward a down payment.

2. Lend money. Rather than gifting, you may prefer to loan money. In order to avoid taxation, the government requires that loans from family members meet or exceed minimum loan rates to avoid having the loan be considered a gift.

If you have any real estate or mortgage questions about Carlsbad, La Costa, or other coastal areas, please contact us.

Tags: Carlsbad Home Prices, Carlsbad Interest Rates, Carlsbad Mortgages, La Costa Home Prices, La Costa Real Estate

Posted by Mike and Amy Mewborn//