How to transfer fund to my wife to buying a house?

I am in NYC, and my wife is in Tucson, AZ. She is buying a small town house there in AZ but I have all the money for down payment in my own account. We don't have a join account yet. Now how do I give the money for her for the down payment at closing?

I thought about several options:

1. I just go to my bank, get a cashier check, and fedex to her.

2. Wire the money to her account or write a check to her, and then she can get a cashier check from her own bank

I think mostly at closing, they need cashier check.

Now with #1. is it safe?

With #2, could this way cause some tax issue? would IRS treat the check as her income and then tax it?

Is there any other better way?



Yeah, I do banking online. Mine is Citi Bank.

4 Answers

  • 1 decade ago
    Favorite Answer

    Money transferred between spouses are not taxable by the IRS unless you are in business and she is issued a w-2 or 1099.

    Are you on the mortgage loan application and will you be on the title of the property being purchased in Arizona? If this is the case you might wire the money direct to the escrow or your wife's account, as the mortgage loan application would indicate where the funds are presently and where it is coming from.

    Seasoning of the funds might be a problem, but since you are married that can easily be explained as long as the funds have been in your account for 3 months or more. Your wife's mortgage loan officer should be able to assist in this matter.

    What ever funds your wife need to close the real estate transaction may be wired directly to her bank account. It matters not about the amount being wired, as this is a bank to bank transaction. You can not walk into a bank and deposit $10,000 without being reported to the feds as this is a red flag for bankers. A wire transfer is different, therefore you might transfer any amount from bank to bank.

    A wire transfer would put the money at here disposal immediately as there will be no hold placed on this transfer. Also it takes about the same time for the funds to appear in your wife's account as you would receive an email. While you are there your bank will give you proof of the transfer has occurred.

    To accomplish this transfer you would need your wife's routing number to her bank and her account number. She might get this number by calling her bank or looking on her check issued by her bank.

    I hope this has been of some benefit to you, good luck.

    "FIGHT ON"

  • 1 decade ago

    If you write her a check for a large amount, it will be held for several days until it clears.

    Yes at closing she will need a cashier's check.

    OR, you can set up in the closing documents for the money to be wired from your bank.

    Do you bank online? Many banks allow electronic transfers between institutions.

    However a deposit over $9999.99 would cause an alert sent to the IRS, so be careful there.

    Surely her lender can work out a way for the down payment to be funded. She should ask them about the best way to do this.

    Source(s): Realtor
  • 1 decade ago

    I went thru this sometime ago where my husband and I were buying a home in my name only. He was able to just transfer the money from his account to mine however the lender needed a form noting the money was a GIFT and was not to be paid back. (They want to make sure someone's not loaning her $10k or whatever it is because now that's a DEBT that she owes and that would may change her risk factor for them).

    The lender needed printouts from both our accts and the signed form noting it was a gift. The lender wants a paper trail!!! As far as the transfer, the online transaction should be good enough by give your bank the heads up so they can release any funds that might get held up in normal wait times.

  • Debdeb
    Lv 7
    1 decade ago

    This is a little complicated. Is she buying the house in her name only? If not, then the lender and title company will help you work that all out. Talk to them.

    If she is buying the house in her name only, you may have a problem. The Patriot Act requires a paper trail for the money. There are requirements for how much of the buyers own funds must be used for various types of loans. You can't just give someone the money for them a down payment if she's getting a mortgage.

    Again, talk to the lender and get their help. They are your experts in this case, not a bunch of strangers on the internet.

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