QUESTION
If I want to pay off the home mortgage of my son, does he have to pay taxes on it?
Asked on Apr 15th, 2014 on Taxation - Washington
4 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would strongly suggested you confer with an attorney, and perhaps a tax accountant. Paying another's death in the amount of $146,000 would most assuredly require at least filing of a gift tax return. While it is up to you, I would certainly think that seeking counsel about a gift that large would be certainly worth the fees expended.
Answered on Apr 16th, 2014 at 10:37 AM
No, this payoff money is not income to your son. It is, however, a gift, so a gift tax return may be needed, although it's not likely any gift tax would be due. You need to consult with a tax professional about gift taxes and your options.
Answered on Apr 16th, 2014 at 7:18 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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There is never income tax on a gift. There is a $5,000,000 lifetime exemption on the gift tax.
Answered on Apr 15th, 2014 at 9:00 PM
Business/ Commercial Attorney serving Bellevue, WA
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Lana Kurilova Rich PLLC
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The short answer is, no, but you will have to file a gift tax return if you are gifting him this money, essentially. If it is a loan and he will be paying it back to you, there has to be a loan document between him and you, and he actually has to be making payments to you.
Answered on Apr 15th, 2014 at 8:59 PM