Joint Bank Accounts and Gift Tax?
Asked by: megan
Here is the situation….
I live in Massachusetts. I have several bank accounts that I have my mother on as the second person (aka joint account). This includes a checking account, a savings account as well as 2 CDs. The total in these accounts is roughly $ 25,000. My mother is not even close to retirement age so there is no death situation there.
I am trying to use this money as a down payment on a house. I read online that I may be hit with a gift tax if I choose to withdraw the money and use it as a down payment to a house that will be owned by me. There is a limit of $ 13,000/year. Apparently with a joint account, half the money could potentially be mine and half could be hers?
What is the best way to approach this situation?
I also read that you may not need to pay a gift tax for the year if you apply it towards the lifetime limit of a few million. You would just need to mark this on the taxes. Does that make any sense?
How others found here:
- joint account gift tax
- joint account gifting rules
- gift tax on joint savings account