A gift is an asset when you receive the gift from the proper person.That proper person in your life would be a central family member (mother, father, brother, sister), a fiancée or a same sex partner.For the first choice, the person must be a close family member, not a cousin, for the last two, you must be living together for at least one year and show proof of address by license or utility bill with the same address.

     A gift is an asset if you do not need to pay it back.If you have to pay it back, it will be a liability and the payments will be added into your monthly liabilities.

     You prove the money is a gift by providing the following documents: copy of a check made payable to you, a deposit slip showing the money has gone into your account and the current balance on your account showing the money is (still) there. The donor will also have to complete a form saying it is a gift and you do not need to pay it back.A lender may also ask the donor to show a copy of the bank statement showing the money is (really) there.You should tell the loan officer you are doing this at the time of the loan application and they will instruct you as to what to do.

-Dale Siegel