topic Paying Down Spouse's Mortgage - Large Lump Sum in Home loans

Paying Down Spouse's Mortgage - Large Lump Sum

sammael585 — Tue, 15 May 2018 21:39:15 GMT

My wife had a mortgage on a home before we got married. Now that we are married, the only way to add me to the loan is to refinance. I've looked into doing so, but now is not the time.

I would like to put $30,000 dollars from my savings towards her mortgage to eliminate the PMI requirement, thus reducing the monthly payment.

1. Would doing so run afoul of the gift tax law?

2. Would doing so run afoul of any other tax laws?

3. How do I report this on my taxes?

4. Are there any other reporting requirements for this transaction?

Thanks!

Re: Paying Down Spouse's Mortgage - Large Lump Sum

Carl — Wed, 16 May 2018 14:35:29 GMT

Because you are married, the gift tax filing requirements do not apply to a married couple. Doesn't matter if you live in a community property state or not. Monies transferred between a married couple don't count for anything. You don't report anything to anyone on any form, because there's nothing to report. It's no different than giving your child lunch money every day. Remember, now that you're married there is no more of this "my money, their money" stuff. It's now "OUR" money. Giving your spouse money to pay down a debt is the same as taking money out of your left pocket, and putting it in your right pocket.

Re: Paying Down Spouse's Mortgage - Large Lump Sum

sammael585 — Wed, 16 May 2018 16:25:31 GMT

Thank you, Carl. I thought this might be the case, but wanted validation 🙂