Today the President called on Congress to extend the middle class tax cuts for the 98 percent of Americans making less than $250,000 for another year. In fact, the President’s proposal extends tax cuts for 97 percent of all small business owners in America. If Congress fails to act, a typical middle-class family of four will see its taxes go up by $2,200, and America’s small business owners would take a big hit. The President refuses to let that happen.
Details around giving the gift of a home down payment: The rules for using down payment gifts differ depending on which lender you use and whether your loan is guaranteed by Fannie Mae, Freddie Mac, or FHA. Hoak outlines the rules for each in her blog.
If you’re the one making the down payment gift, you won’t have to pay federal income tax, nor will the recipient, as long as you give $13,000 or less in 2011 or 2012. You can give up to $13,000 per person without tax implication to any number of people in one year. You and your spouse can each give separate gifts to your child. The IRS calls this gift splitting. For instance, if you’re planning to give to your two children, you and your spouse can each give each child up to $13,000 for a total of $52,000 ($13,000 x 4). (Houselogic 12/28/11)