Parents who are looking for a gift to give their kids this holiday season should consider a house.
With prices in the cellar, this could be a terrific year to give a down payment or even the whole home.
The Internal Revenue Service says a married couple can each give gifts of $13,000 of money or property without triggering taxes for the gift givers or the recipients. That means a married couple can give another married couple a total of $52,000 a year. To maximize that they can give $52,000 in December and another $52,000 in January for a total of $104,000 to be used on a property before the federal tax credit expires.
This would buy a house in some parts of the country and be sufficient for a down payment in most others.
Source: The Wall Street Journal, June Fletcher (11/27/2009)