Will there be tax on a down payment that has to be made with a gift letter.
My partner & I have lived together for over 10 years and have two kids, but we are not married. Her father recently passed away and left her a large sum of money. We are buying a $600,000 home. I'm taking out a loan for $170,000 and she will put down $430,000 to pay for the rest. In order to take out the loan the bank says she needs to sign over a gift leader because she can't be on the loan. My questions is "will we be taxed on the $430,000 at the because its labeled as a gift?" We have heard conflicting advice.
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