<prompt> Human: Hello all,My parents and brother have 2 homes in Seattle. They are likely to sell them and move in together into a single, larger home. The problem is that finding an ideal new home, while simultaneously selling both smaller homes can leave them in a lurch for the down payment. I am fortunate enough to have 50-60K to loan them if need be, to smooth out the transition for a few months. I am new to having money, so I apologize for my ignorance, but can I make give them a loan of this size without exposing any party to tax liability? Is this a complex enough matter that a professional is required? If so, just a CPA?Thanks!  <response>: Most banks wont allow them to have a loan from someone else as a down payment. Part of the process of getting a mortgage is going through each parties finances with a fine tooth comb. They will see the extra money and where it came from and likely wont approve of it being used for a down payment. They could claim it as a gift but that would require you to sign paperwork acknowledging the money is a gift and does not need to be paid back. In that case and unless you get down legal agreement drawn up and notorized if they dont pay it back, there is jack shit you can do about it. If they want a house they can save up their own down payment. It will take time and effort, but if they want it theyll find a way to make it happen. I would only gift them this money is youre prepared or it to be just that - a gift. They are not in the lurch for a down payment because of trying to sell two different houses and buy a new one - if they had been planning for a new house and saving for one the responsible thing to do then it would be a non-issue. Why dont they have one of them sell their house and move in with the other until a new house is found? Then the proceeds from the sale of the first house can be used as a down payment. On the tax burden - gift tax has a high lifetime exclusion and you can find more about it here You can find more info about making a loan to family IRS-friendly here and here 