BUYING A CO-OP WITH OR WITHOUT PARENTS - WHAT IS CO-PURCHASING
Co-Ops get a bad reputation for being strict as to who qualifies as a buyer and having a no sublet policy,. Despite this, there are co-ops that are more lenient, and in fact will allow parental gifting and co-purchasing to pass.
Things you should ask your accountant:
Does the portion of my taxes baked in my maintenance help me as a write off? I cannot write off all my rent.
Are there any incentives for me as a single woman?
Will my tax bracket go up if my residence is in NYC?
Can I write off my mortgage interest?
Does parental gifting make my parents/me incur taxes? What is the new regulation with gifting?
Parents gifting their child the funds to purchase an apartment in NYC is quite strategic. I see this happen a lot, as foreign and domestic buyers have children attending some of the best NYC universities and colleges and foresee the upside of buying an apartment for their child to live in instead of dorm to be strong. The following highlights as it pertains to GIFTING should be informative and not constitute as financial advise. Remember you as an individual case should always speak to your financial advisor, attorney, and accountant as your circumstances might not apply here.
1. A gift tax is something the IRS may impose on someone who transfers money or property to another person without receiving at least equal value in return. This could apply to parents giving money to their children, the gifting of property such as a house or a car, or any other transfer.
2. If the amount stays below the gift tax exclusion, both annual and lifetime, you won’t have to worry about any tax. The annual gift tax exclusion for 2019 is $15,000, and the lifetime exclusion is $11.4 million.
3. If you gift more than the exclusion to a recipient, you will need to file tax forms to disclose those gifts to the IRS. You may also have to pay taxes on it. If that’s the case, the tax rates range from 18% up to 40%. However, you won’t have to pay any taxes as long as you haven’t hit the lifetime gift tax exemption.
4. The IRS allows every taxpayer is gift up to $15,000 to an individual recipient in one year. There is no limit to the number of recipients you can give a gift to. There is also a lifetime exemption of $11.4 million. Even if you gift someone more than $15,000 in one year, you will not have to pay any gift taxes unless you go over that lifetime gift tax limit. You will still need to report gifts over the annual exclusion to the IRS via Form 709. The IRS will lower your remaining lifetime exclusion over time and then use that amount to determine how much of your estate you need to pay estate tax on.
Full article here: https://smartasset.com/retirement/gift-tax-limits