Tag Archives: tax penalties

Can my father give me 25,000 for bills and down payment on a home free and clear? Or are there tax penalties?

My dad is going to help me pay off my car and give me down payment money for new house totaling $25,000. I will repay half this amount a little at a time. He was going to give me a cashiers check and let me spend it but I’m afraid there will be tax implications. I live in New Mexico. I thought that maybe he could just write the check for the car and give me a smaller amount in cash or smaller gifts separately. What are the rules? Also I will eventually inherit money for the sale of his land that is getting paid monthly through escrow. Is there a way to avoid losing inheritance this way? He currently lives off this money. Thanks for the advice.