For guests & families
Tax-smart ways to give
A down-payment gift is one of the most meaningful things you can give. Here's how to give generously, keep the paperwork clean, and help the couple stretch every dollar.
The $19,000 annual gift limit
Each person can give up to $19,000 per recipient per year without filing anything with the IRS. Gifts are never taxable income to the people who receive them.
$19,000
One giver → one person
$38,000
One giver → a couple (each spouse counts)
$76,000
Married givers → a married couple
- Going over the limit usually means no tax is owed — the giver just files a gift tax return (Form 709), and the excess counts against a very large lifetime exemption.
- Timing helps: a gift in December and another in January fall into two different years.
- Registry gifts to a couple or family are personal gifts, not charitable donations, so they are not tax-deductible.
Keep the lender happy
Mortgage lenders want to know down-payment money is a true gift, not a loan. After giving on Threshold, you can sign a short gift letter in two minutes and get a printable receipt. The couple can download every letter as one lender-ready packet.
Many loan programs prefer gifts from relatives; some limit gifts from friends or from anyone involved in the sale. The couple's lender will confirm what is allowed.
State programs for first-time buyers
Pair registry gifts with help that's already out there:
Down-payment assistance from your state housing agency
Every state has a housing finance agency offering grants, forgivable loans or lower-rate mortgages for first-time buyers — for example RIHousing in Rhode Island and the Texas Department of Housing and Community Affairs / TSAHC in Texas. Search "[your state] housing finance agency first-time homebuyer."
First-time homebuyer savings accounts
Several states — including Colorado, Iowa, Minnesota, Montana and Virginia — offer special savings accounts where deposits for a first home can lower state income tax. Rules, limits and deadlines vary; check your state's revenue department.
IRA first-home withdrawal
A first-time buyer can take up to $10,000 (lifetime) from an IRA without the early-withdrawal penalty; income tax may still apply to traditional IRAs.
Local programs
Many cities and counties run their own down-payment programs. Ask a local lender or HUD-approved housing counselor.
This page is general information, not tax, legal or lending advice. Limits change yearly and programs change often — please confirm details with a CPA, the IRS, your state agency and your lender.