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Yes, you report it as a gift. If you later pay it back, you committed fraud. [edit] to clarify what may be a point of confusion: Rich parents are often in a p
by vundercind 2y ago
Yes, you report it as a gift. If you later pay it back, you committed fraud.
[edit] to clarify what may be a point of confusion:
Rich parents are often in a position to comfortably gift their kid(s) tens of thousands of dollars for their first down payment.
Non-rich parents are more often in a position to somewhat-uncomfortably “gift” that money. It’s a gift on paper, but it’s actually a loan and they need the money back eventually (maybe for the next-oldest kid to borrow for the same purpose, lol). That’s when it’s fraud.
- doubleg72 2y agoDefinitely not.. they can’t prove beyond a reasonable doubt it was a loan originally.
- vundercind 2y agoYou agree it’s illegal (it is) but don’t think it can be proven? “Here are bank records showing the defendant received $5,000 dollars. Here are further records that show payments back to the person who sent the original $5,000. They occur over a span of eleven months. Eight transactions are for $500, one is for $450, and a later one is for $550, totaling $5,000. Only one month in this otherwise contiguous span—December—is skipped, with no payment occurring. Mr. [defendant], was this $5,000 in fact a loan?” You’d have reasonable doubt?