We have finally decided to purchase our first home and we plan to borrow interest free money from friends and family to pay off 20% downpayment and get cheaper interest/escape PMI.
IRS says .. "The donor is generally responsible for paying the gift tax." and "The annual exclusion for 2014 and 2015 is $14,000."
If I borrow $5,000 from 5 different friends amounting to $25,000 do I or they need to worry about gift taxes?
If I have around 6,000 cash in hand which I deposit to my bank for the downpayment, is that considered as gift?
Both me and my wife are on the title, but the mortgage will be under my name, so can I assume any payment coming from my wife's account wont be treated as gift?