By Ilyce Glink and Samuel J. Tamkin, Tribune Content Agency

A friend is buying his parents’ home. He is using an online lender. He doesn’t have a real estate agent, and there is no written sales contract. The lender says his parents can gift him the house and the lender will then set up a refinance loan for him. Would the transfer of the home to my friend cause his parents to pay some type of tax to the IRS?

No. The transfer itself wouldn’t trigger immediate taxes for either the parents or your friend in the year the gift is made.

For 2025, the annual gift tax exclusion is $19,000 per person . This means each parent could give your friend $19,000 (for a total of $38,000) without any reporting requirements or tax consequences. Your friend would receive this money tax-free as well. The

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