Gift Tax issues

[RAMMor]

Hello , My brother is arriving as a new immigrant .
He is going to buy me a home as a gift .
Will it have a tax effect on me or him ?
I am not having any home now .
Regards

 

[newtone]

Depends whos name is on the ownership of the home. If he is paying and the home is under your name then you are liable for taxes

 

[RAMMor]

Dear , Thank you for your reply .
Could you please be more specific ?
If he pays money to me( as gift cash) and I buy a home , am I still liable for a tax ?
What if he buys the home and transfers it to me ?
how can I avoid being taxed for a family gift ?
He is quite open and cooperative on helping me on this issue.
Thanks indeed.

 

[newtone]

If he gifts the money to you there is no tax on the money gifted to you. However if you are using that money to to buy property and the property is in your name then you are liable for property tax. You cannot avoid property tax. Everyone is required to pay it as long as you have property you have to pay taxes. If he buys the home and transfers to you then you are the owner and you are liable to pay property tax. If he buys the home and the home is under his name (which makes him the owner) then he is liable for property tax

 

[RAMMor]

Dear
many thanks for your prompt reply .
Except for Property taxes , my main question was it :
Is the gift itself( either in the form of cash money or in the form of a house) , brings me or him any TAX issues ?
Would paying and receiving GIFT( for few hundred thousand dollars) , may result in tax issues( for payer and receiver ?

 

[newtone]

If the gift is in the form of house and you receive the gift (and your name is on the gift) then yes you have to pay tax. Which is why I asked who's name will the house be under.

 

[RAMMor]

If it is JUST property tax ..it is fine , but if there is some EXTRA TAX , because of the nature of money( which is a gift) that is what makes me worry .
Shall I be worry ?

 

[newtone]

NO, but there is something called Land transfer tax (this is only one time fee), this is a tax you have to pay when the person transfers the land to your name. Please consult a real estate agent for more details.

 

[RAMMor]

Thanks indeed . Appreciate your very helpful information .
Regards