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posted Feb 2, 2020 7:46:20 AM

Parents pay off mortgage

My parents have graciously offered to pay off the balance of my mortgage, and will pay the mortgage firm directly.  do either of us have to report that on our tax returns? Do they have to fill out the gift tax report? It’s over 100k 

 

 

 

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2 Replies
Level 15
Feb 2, 2020 7:53:17 AM

If this is a gift then you do not report the gift received on your tax return, regardless of the amount received.

 

The gift giver must report the gift given if the amount is greater than $15,000 to a single individual in 2019.

The gift given is reported on an IRS Form 709.  TurboTax does not support Form 709.

 

There will not be any taxes owed on the gift if the total of all gifts every given is less than $11.4 million.

Level 15
Feb 2, 2020 7:20:26 PM

to follow on from @DoninGA comments...

 

are you married? can the gift be split - this year and next year? 

 

your parents can give YOU $30,000 without worrying about the gift reporting and of course they could give another $30,000 each year to your spouse / significant other.  that avoids the whole gift reporting (if under $120,000)