Tax on gift from parent--?
My father wants to withdraw some money from an IRA to enable me to avoid PMI. (Yes, I feel guilty, but that's another story.) Probably between 10 and 15K. My understanding is, he will have to pax taxes on it taking it out of the IRA, but no penalty, as he is 70. As I understand it, I will *not* need to pay taxes on it if it is less than $12K just to me, or if it is more, he could give a few K to my husband. Am I right?
If I take a home equity loan to avoid the PMI, he could make the withdrawal next year and possible avoid putting himself into a higher tax bracket this year--?
Is this right?