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Understanding Gift Tax: What You Need to Know

Understanding Gift Tax: What You Need to Know

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 We explore the tax implications of gifting funds for a home down payment. We discuss the annual gift tax exclusion and the importance of proper documentation, such as gift letters, to clarify the nature of the funds and ensure compliance with IRS regulations.

Whether you're considering assisting a family member with a down payment or planning to receive such a gift, this episode provides valuable insights to navigate the process smoothly and avoid potential tax pitfalls.
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