Gift Funds to Children to Buy a Home

Want to help your child purchase a home? You may be able to give more than you think.

In 2026, the annual federal gift-tax exclusion is $19,000 per giver, per recipient, but this is not necessarily a limit on how much you can contribute.

Here’s How It Works:

• $19,000 annual exclusion: Each giver can generally give up to $19,000 per recipient in 2026 without the gift counting against their lifetime exemption.
• Larger gifts may be possible: Giving more than $19,000 does not automatically mean you owe federal gift tax.
• Lifetime exemption: Amounts above the annual exclusion generally count toward the $15 million federal lifetime gift and estate tax exemption for 2026.
• Example: If you give your child $50,000, the first $19,000 generally falls under the annual exclusion, while the remaining $31,000 generally counts toward your lifetime exemption.
• Gift funds may help with:
• Down payment
• Closing costs
• Paying down debt to help qualify for a mortgage

The takeaway: If you're financially comfortable helping your child purchase a home, don't automatically assume $19,000 is the maximum you can contribute.

*Please consult your tax or financial professional regarding gift-tax reporting requirements, estate planning, and any applicable state tax considerations.