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Does gift tax apply to joint tenancy and unequal down payment?

Forum|Forum|4 years ago
September 29, 2021
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I (NRA) and my partner (US Citizen) bought a house together in 2021. We paid 50% as a down payment and I contributed 90% to the down payment. Our names are both on the mortgage. She will pay 90% of the mortgage and I will do the rest of 10%. In that case, we both contribute 50% of the total price. Just want to know for tax year 2021, is the down payment regarded as gift money, and do we need to pay gift tax? Thank you for any help!

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Best answer by Anonymous_

I agree that it is not a gift, but only because there is a quid pro quo; you, @yanyiming, are putting 90% down in exchange for, apparently, your partner paying 90% of the mortgage.

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GeorgeDenseff

No this is not a gift. You are co-owners and your down payment was a personal purchase.

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Anonymous_Answer

Employee

I agree that it is not a gift, but only because there is a quid pro quo; you, @yanyiming, are putting 90% down in exchange for, apparently, your partner paying 90% of the mortgage.