Gift Tax Help Needed

[Shawn Knight]

Hi, I am working on purchasing my first multi-family investment property (4-units or less) in which I will be owner-occupied. I am needing to receive $200,000 in gift funds from my parents to add the down payment to make this deal happen and have been researching the topic to understand as best as possible before posting here for help. Here's my current thoughts, please help me understand if this will work or if there is a better solution.

Some things I've learned and believe I understand correctly:

• 1. For 2019 someone can gift $15,000 or less annually without having to pay taxes or report it. 
• 2. Both my parents (father and mother) can each give me $15,000 (dad gives me $15k, mom gives me $15k) in the same year for a total of $30,000 untaxed or need to report.
• 3. My parents can also give my wife $30,000 (dad gives my wife $15k, mom gives my wife $15k) for an additional $30,000 untaxed or need to report.
• 4. My parents can also give each of my children $30,000 (dad gives $15k to child, mom gives $15k to child). I have 3 children so that comes out to a total of $90k to all my children together. All of my children are minors ranging from 2 to 8 years old.
• 5. The $60k ($30k +$30k) to my wife and I, plus the $90k to all my children come out to a grand total of $150k untaxed or need to report in 2019.
• 6. It's currently November 2019. If they were to give us $150k as stated above in 2019, then starting January 1st in 2020, they could give us the remaining $50k to my wife and I untaxed or need to report since it's a new year.
• 7. The $150k in 2019 and the $50k in 2020 get us to our goal of $200k untaxed or needing to report.

If the above is correct. Do I simply need to open bank accounts in my children's names (minors) and after they money is deposited, then transfer the money to my main account for use in our investment?

Would I also need to let the money sit in my account for 2-3 cycles (2-3 months) for it to show as technically my own funds or do I not need to do this for non-investment property since I will be owner-occupied? I believe I read that since I will be owner-occupied I am able to use gift funds towards the purchase of a property.

Thanks in advance for your help, really appreciate it.

Shawn