I have a living parent (not a family member skipping a generation-GST) offering to give me an amount of cash above 10k, more towards 40-50k. Since this amount is above the 10k threshold, does the GST apply in this instance? ---(IRS 709 indicates it’s 24% on 40k-up to 60k = $12k), but is not skipping a generation since I am a biological son.
2nd – If so, on the 24%, instead can the parent make a direct principle payment to my home mortgage or even Dept of Ed - Student loan, thus skipping the direct payment to me so there’s no gift amount to be taxed ($12k) and make the payment direct from their bank acct to HMort or D of E? I understand I will not have the tax benefit on OUR (wife and I) tax return, but rather theirs, correct? And might lower their tax liability as well, correct?
Thank you for offering this forum and your time. - Please OMIT my name if this question is reposted.
