Katie Dorval Discusses Tax Considerations When Gifting Home Downpayments
When transferring real estate to the next generation, there are certain estate and gift tax considerations families should understand. In Massachusetts, residents may be subject to estate taxes because the state’s exemption threshold is relatively low –$2 million – while real estate values remain high. By comparison, the federal estate and gift tax exemption is $15 million per person in 2026.
Katie Dorval was recently quoted in an article in The Boston Globe that examined the tax implications of parents helping their adult children purchase homes. The article also explored federal gift tax rules and the annual gift tax exclusion. In 2026, individuals can give up to $19,000 per person per year without reporting the gift to the IRS. Married couples can combine their exclusions, allowing them to give up to $38,000 to a child without filing a gift tax return or reducing their lifetime federal exemption. Here is an excerpt:
“A lot of people are confused about the $19,000 limit,” said Katie. “But it’s not really a limit on the amount of gifts you can give; it’s just the amount where the IRS says that below that amount, they won’t pay attention to it.”
The article also examined the tax treatment of inherited and gifted homes, including how a property’s tax basis can affect future capital gains taxes.
Read the article “More parents are helping their adult children buy homes. There may be tax consequences.” on The Boston Globe website (subscription required)
Categorized: Taxes
Tagged In: annual gift tax exclusion, federal estate taxes, federal gift tax rules
