Estimate the equity gift amount when a home is sold below market value to a family member, and its impact on financing.
The gift of equity is within the 2023 annual gift tax exclusion limit of $17,000.
A gift of equity occurs when a property is sold to a family member or close associate for less than its fair market value. This difference acts as a "gift" from the seller to the buyer, which lenders often allow to be used as a down payment.
Get an occasional email when we ship new calculators and updates. No spam, unsubscribe anytime.
We respect your privacy. No spam, ever.