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    Ojcol's Avatar
    Ojcol Posts: 1, Reputation: 1
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    #1

    May 7, 2014, 03:29 PM
    father lending money
    My father is going to lend me to buy a house for $170,000. He is not american and my status here is H1B (working permit) so I am not american either. My question here is, can we do that? Is it possible he could lend me the money so I can buy the property? What is the best solution to proceed?

    Thanks
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    May 7, 2014, 07:24 PM
    When you get ready to do closing, have him wire money directly to the closing attorney to be put into escrow.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    May 8, 2014, 06:51 AM
    There are no taxes assessed on the loan, and since your father is NOT a U.S. citizen, you need do nothing to clearly establish that it is a loan and not a gift.

    However, Form 3520 will need to be filed to show details about the money transfer. That is information only; no tax will he due.
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