If I pay back an IRA withdrawal used for an investment property within 60 days will I be taxed on it?

gifts for her 60 image

MissKitty

We are buying an investment property and part of the down payment is coming from my mother. She doesn't want to be on the deed, just wants to help with the down payment. However, you're not allowed to use gifted money toward a down payment on an investment property. So to get around this I'm thinking of taking money out of my traditional IRA, using it toward the down payment, and then paying the money back (using my Mom's gift) within 60 days to avoid being taxed on the withdrawal. Is this okay or will I get in trouble with the IRS?

Answer
If you pay the entire distribution back within 60 days of the date of distribution, you will not owe tax on the amount taken out of your IRA. You must pay back the amount you receive, plus the amount that was withheld for taxes. A mandatory 20% is withheld for taxes. If you do not pay the amount withheld, that amount will be subject to tax plus a penalty even though you did not receive it.

When you file your taxes, the tax withheld is a payment that you may receive back depending on your other income.

What are some gift ideas for elderly ladies?

ladybug16

I want to give 10-12 affordable Christmas gifts for ladies 60 years of age and older, but can't think what. Help!

Answer
I am one of those "elderly ladies" and here is my list.

1. Yarn - I love to crochet
2. A fruit basket
3. Cookies
4. Candy
5. Earrings
6. Writing paper, envelopes & postage stamps
7. Place mats & napkins
8. Tea
9. A plant
10. Lipstick & nail polish
11. Books
12. An apron (with pockets)

I could go on...But, mainly I would appreciate anything given with kindness that is not so big that I would have to find a place for it.

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