I work with a very diverse group of clients. One group is parents either buying, or helping their kids purchase a condo in Lincoln Park. For those who are planning ahead, this time of year presents a unique opportunity to help your kids with their down payment.  And BONUS!…there is little or no tax implications to you!  Here’s how it works. You can give up to $13,000 per child (or up to $26,000 if given jointly with your spouse) without triggering the IRS gift tax.  Even though I’m not a CPA or tax attorney, this sounds like a pretty sweet deal if you are of the mind to help your children with a cash infusion!

Assuming you have not hit the maximum amount that you can gift, the real beauty to this timing is that you can max it out by the end of December 2010 & gift the full annual amount again in January 2011. So theoretically, a parent, with their spouse, can give their child up to $52,000 in a matter of a few months, which adds up to a pretty substantial sum of money that will surely help with your child’s down payment.  Talk about a Happy New Year!

And, according to the AXA Equitable site, “if you don’t feel comfortable with giving substantial gifts directly to your recipients, the IRS allows another avenue. You can, for example, pay someone’s college tuition or medical expenses on a gift tax-exempt basis — as long as you write the check directly to the institution. This is generally considered a qualified transfer with no dollar limits.” While this is not relevant to helping your kids buy a condo, there may be other benefits to family members.

So if you are looking to purchase a condo this spring for or with your kids, now is the time to start planning. And while you’re discussing the financial options over the holidays, you might want to begin searching for that perfect Lincoln Park condo.