I'm considering buying a house for 200k. When buying place ($200k), I will be paying 120k as down-payment, and financing the rest. I am thinking of my mother pay an additional 80k (to buy the place for cash).
Should I do this or not? I will still be a little liquid, but no where near as much. She will still be liquid as well. I am not married / not kids.
What are the pros/cons of this? If she adds 80k, will that count as a gift, and will I have to pay taxes on that? How do I avoid double-paying taxes on that? Makes no sense that it would be taxed again.
If double-taxation can't be avoided, what's the maximum she can give to avoid it? Also, I'm considering signing a personal loan with my mother to pay her back with 0% interest to avoid the taxation issue. Is this an option?
I don't want her name on title because she never bought a home and if she wants to buy a place, I don't want her loans to be at higher interest later on. She's fine not being on the title.
Also, I know there's a 13k yearly limit on gifting. Does that mean that if she gifts more than 13k that she will be tax-liable for it?