Legal Question in Real Estate Law in California
Uncle Giving Me Cash to Buy House
Hi,
I own my own condo right now. My uncle from Taiwan is giving me and my brother cash to buy an apartment, I guess as a gift. My brother will be living in it, I will continue to live in my own home. Since my brother is only 18, my parents thinks I should buy this house using my name only, not my brother's. Is there going to be issues with this? One, I already own my own home, so is that going to seem questionable that I buy another house with cash, especially one I am not living in? Two, is the mere fact that my uncle from another country is giving me cash a problem and subject to investigation?
3 Answers from Attorneys
Re: Uncle Giving Me Cash to Buy House
God bless you for having a generous uncle. You do not have to pay tax on gifts you receive. Gift tax, if any, is paid by the donor. Cash or bearer instruments (checks made out to cash) $10,000 and over that is brought into the US must be declared to Customs. I have no opinion on whether you or your brother should take title to the real estate, but if you give it to him later you might have to pay gift tax. Maybe if your uncle gives the money outside the US it will not be subject to US gift tax. Consult a Taiwanese attorney or tax advisor to see whether such a tranaction would have tax consequences there.
Re: Uncle Giving Me Cash to Buy House
Investigation? Yeah, I'd say so. Unless properly documented and reported, you'd likely be violating various tax laws, among other things. Suggest you get some actual legal help and advice before doing anything, if you intend to keep this 'legal'. If you're in SoCal, feel free to contact me if serious about doing so.
Re: Uncle Giving Me Cash to Buy House
Investigation? Yeah, I'd say so. Unless properly documented and reported, you'd likely be violating various tax laws, among other things. Suggest you get some actual legal help and advice before doing anything, if you intend to keep this 'legal'. If you're in SoCal, feel free to contact me if serious about doing so.
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