All Forum Posts by: Talford Thompson

Chris Mason ah, makes sense! That was the piece I was missing! By that logic, so long as we have the terms of our arrangement clearly defined, we could protect ourselves from such a blunder in an audit. I would be able to borrow as much as I wanted by showing it is factually a loan, but then any income they earn from said interest would be taxable, which is strictly speaking what they want to avoid. Thank you! I'll continue my calculations with the $28K number to play it safe and discuss how it may look with them should they decide to come on as actual investment partners with me.

Hey Chris Mason ! Thank you for the welcome and reply. I'd be in need of a traditional or FHA mortgage most likely since I'm in the Cali market. It would also be my primary residence, looking to get started in a du/tri/fourplex and live in it for 2-3 years until my girlfriend discovers where she'll be matched for her residency.

My parents are willing to help me finance my first investment. However, they don't want to incur any additional taxes and thus could only offer $14k/each this year under the Gift Tax exemption rules. My question is: If investors can invest as much money as they want in a particular venture, wouldn't this situation allow me to bypass the gift tax if I take them on as partners? Just not clear on the distinction between a gift & private loan in this scenario. Any clarification or insight is appreciated! Thanks, T.J.