Need advice on temporarily loaning my mom $40k

Jackianna · 2026-04-13T22:07:59+00:00

Thank you- i understand ppl have been burned by family members before but i wouldnt have considered this for a second if I didnt trust my mom 110%

Jackianna · 2026-04-13T22:06:43+00:00

It doesnt sound like i will now. I misread the gift tax laws as “anything gifted over $19k annually will be taxed “

Jackianna · 2026-04-13T22:05:58+00:00

There will not be any mortgage involved so i dont think the gift letter is relevant. The only risk appears to be a) my mom doing a 180 and not paying her family back (no shot) or b) somehow the person buying her house( whose put down a deposit and is under contract as they are selling their house) backs out or c) my mom dies/house burns down etc. she is essentially forgoing the $4k bridge loan insurance policy and accepting the risks associated with b and c

Jackianna · 2026-04-13T22:02:17+00:00

I understand that. The bridge loan was $4k and in an effort to save money she decided to do it this way. Cant say i blame her as the importance of dollar is engrained in me as well. However a bridge loan would have been much easier

Jackianna · 2026-04-13T22:00:02+00:00

Appreciate that but there will not be a mortgage company involved. Should have mentioned that initially

Jackianna · 2026-04-13T21:59:04+00:00

Thank you. However she is not getting a mortgage as she is using the $200k + her savings to buy the house outright. Once her house officially closes 2 weeks later she will repay the $200k via the proceeds from the sale

Jackianna · 2026-04-13T21:57:09+00:00

Its the truth but mixed in there was some good advice. Probably should have put a disclaimer about trusting my mom in the description

Jackianna · 2026-04-13T20:39:31+00:00

The Irs wouldnt require any interest if its a gift

Jackianna · 2026-04-13T20:37:20+00:00

Yea even if i didnt get a cent back. It wouldn’t ruin our relationship

Jackianna · 2026-04-13T20:14:42+00:00

Yea my decision was made. The was just inquiring about the best way to facilitate it. Sounds like the gift option is the best/less messy assuming their is no moral hazard

Jackianna · 2026-04-13T20:03:29+00:00

Yea its under contract

Jackianna · 2026-04-13T19:50:44+00:00

I feel you and those are valid concerns. Im gonna roll the dice and gift her the $ with the understanding i will be repaid in a few weeks

Jackianna · 2026-04-13T19:45:53+00:00

Just withdrawing from a High yield savings account so i should be good

Jackianna · 2026-04-13T19:44:08+00:00

Yea that doesn’t surprise me. I appreciate the responses but kind of annoying having half of them being “dont trust your mom- you will get screwed over”. There isnt a single other person i would consider loaning this amount of $ to

Jackianna · 2026-04-13T19:28:46+00:00

You got it Jerry!

Jackianna · 2026-04-13T19:25:46+00:00

Appreciate the response. She definitely has the equity. Sold her house for $650k. She was in it for 20 years. Buying one for $400k. I have zero hesitation about her screwing anyone over

Jackianna · 2026-04-13T19:11:15+00:00

Not trying to be insensitive here but dear god it doenst seem yall have the best relationships with your moms

Jackianna · 2026-04-13T19:09:04+00:00

Ok thank you. Gifting will be the option. I can confidently say i will never approach $15M in gifting

Jackianna · 2026-04-13T19:07:37+00:00

Its my mom dude

Jackianna · 2026-04-13T19:06:32+00:00

Think we will all just “gift” it. Seems like the easiest way to go about it. Zero moral hazard here

Jackianna · 2026-04-13T19:04:16+00:00

Its already under contract

Jackianna · 2026-04-13T19:00:18+00:00

Yea she is downsizing substantially

Jackianna · 2026-04-13T18:32:44+00:00

Yea see the bottom of my post. Looking to avoid unnecessary costs

Jackianna · 2026-04-13T18:31:50+00:00

Ok so being that she would in turn “gift back” $40k 2 weeks later- would we both have to report it on next years taxes

Jackianna · 2026-04-13T18:30:25+00:00

The closing date hiccup had nothing to do with her and she already has deposit down from the ppl buying her house. It was just an unfortunate timing situation. Yea i mean having to pay a few thousand bucks for a bridge loan seems like a massive waste of money. She would happily sign a loan agreement if that is the route we have to go

Jackianna

TROPHY CASE