STYLE The buyer of my house is going through some shit....*Update - House sold!*

DasVWBabe

OT's Diamond and Gemstone Tutorial Creator
OT Supporter
Sep 25, 2002
63,043
Frisconia
oh no, private school girl is jelly
Someone doesn't understand how private school tuition FAST programs work. Parents were contributing Catholics and I was zoned for an incredibly dangerous high school so was super lucky to be able to attend. I worked part time myself to help subsidize the last year and a half when I could finally drive. Thanks for playing though.
 

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
26,103
Loserville. Population: 1
yeah gifts toward DP are no issue if parties have all their shit in order and provide gift letters. Also keep in mind tax implications - 15k per yr/per person giving/person receiving so you can manage 60k
Regarding the tax implications, one thing to note is that the bank or closing agent or whomever isn’t reporting anything to the irs about any “gifts” that were provided with a closing.

Also, CPA guys can verify this, but I believe you can “gift” however much you want until you hit a lifetime gift threshold, and only when you exceed that threshold is when you’d be taxed.

@stevezissou @intro_vert13
 

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
26,103
Loserville. Population: 1
Hmm...


Hmm...


Hmm...



Almost exactly like what I just said about the process :hsugh:
People put too much stock in these letters. Agents or homeowners who say “oh we checked to make SURE they were pre-approved first” really don’t understand the whole process. I mean, a pretty-approved buyer is obviously preferred over one who can’t show that they have been vetted by a lender yet. But there’s still a million things that could happen to a “pre-approved” buyer at any point in the process.

What if a condition of approval is to do a verification of prior employment to verify employment dates, etc., and the owner says on the phone “ha, fuck that guy. He walked out with no notice and left me hanging. I hope he doesn’t get the house *click*”

Now what?
 

stevezissou

OT Supporter
Jul 15, 2009
44,150
US
Regarding the tax implications, one thing to note is that the bank or closing agent or whomever isn’t reporting anything to the irs about any “gifts” that were provided with a closing.

Also, CPA guys can verify this, but I believe you can “gift” however much you want until you hit a lifetime gift threshold, and only when you exceed that threshold is when you’d be taxed.

@stevezissou @intro_vert13
There is an annual gift tax exemption of $16,000 per person per year in 2022.

So a married couple could give $16,000 X 2 to an individual gift tax free in 2022 = $32,000

Any amount over that per person per year you have to file a gift tax return which reduces your lifetime unified estate/gift tax exemption.

Current Estate/Gift tax exemption for 2022 is $12.06 million per person so a married couple has an exemption of over $24 million.

Most lenders require "gift letters" to make sure it isn't a loan and isn't expected to be paid back.
 

FutureMan

On the rights of your wealth, I disagree
OT Supporter
Aug 28, 2002
387,917
Liberal Enclave of Darien, CT
There is an annual gift tax exemption of $16,000 per person per year in 2022.

So a married couple could give $16,000 X 2 to an individual gift tax free in 2022 = $32,000

Any amount over that per person per year you have to file a gift tax return which reduces your lifetime unified estate/gift tax exemption.

Current Estate/Gift tax exemption for 2022 is $12.06 million per person so a married couple has an exemption of over $24 million.

Most lenders require "gift letters" to make sure it isn't a loan and isn't expected to be paid back.
You that smart banker that done killed his wife?
 

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
26,103
Loserville. Population: 1
There is an annual gift tax exemption of $16,000 per person per year in 2022.

So a married couple could give $16,000 X 2 to an individual gift tax free in 2022 = $32,000

Any amount over that per person per year you have to file a gift tax return which reduces your lifetime unified estate/gift tax exemption.

Current Estate/Gift tax exemption for 2022 is $12.06 million per person so a married couple has an exemption of over $24 million.

Most lenders require "gift letters" to make sure it isn't a loan and isn't expected to be paid back.
Right. So even if people go over the annual exempt amount, the excess gift isn’t necessarily taxed. It’s just counted towards the lifetime cap of $12m. So no one will pay a gift tax unless they give total lifetime gifts over $12m.

I.e., hardly anyone.
 
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intro_vert13

∞/21M
OT Supporter
Feb 26, 2005
35,951
an offshore haven somewhere
There is an annual gift tax exemption of $16,000 per person per year in 2022.

So a married couple could give $16,000 X 2 to an individual gift tax free in 2022 = $32,000

Any amount over that per person per year you have to file a gift tax return which reduces your lifetime unified estate/gift tax exemption.

Current Estate/Gift tax exemption for 2022 is $12.06 million per person so a married couple has an exemption of over $24 million.

Most lenders require "gift letters" to make sure it isn't a loan and isn't expected to be paid back.
 

stevezissou

OT Supporter
Jul 15, 2009
44,150
US
Neophyte
eeS1t1z.gif
 

kwhitelaw

OT Supporter
Sep 1, 2004
41,747
virginia
@stevezissou the buyer’s lender wants to close now on the 28th because apparently they’re backed up. I told my realtor hell fucking no. :mad:
Have you made them waive contingencies? If not, and they call your bluff and bail, you're putting it back on the market and even with a quick new contract, you're not closing until February so you're making that payment most likely anyhow

Decisions decisions
 
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SBrooks1

SBrooks1

@ComicConScott
OT Supporter
Nov 28, 2002
79,157
Virginia
Have you made them waive contingencies? If not, and they call your bluff and bail, you're putting it back on the market and even with a quick new contract, you're not closing until February so you're making that payment most likely anyhow

Decisions decisions
I’ve already had to pay the mortgage on my house for another month when I wasn’t expecting to
 

mysteryman

OT Supporter
Mar 20, 2006
2,660
Why take an offer with someone with a FHA loan? Next time look at the pre-approval letter and loan type.

PS. $185k house?! I cant even find .25 acres for $200k here.
 
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