Solved: If I pay off parent's mortgage (75K), will either of us be liable for any taxes on this after I transfer money into their account so they can close their mortgage? Thanks
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If I pay off parent's mortgage (75K), will either of us be liable for any taxes on this after I transfer money into their account so they can close their mortgage? Thanks

If I pay off parent's mortgage (75K), will either of us be liable for any taxes on this after I transfer money into their account so they can close their mortgage? Thanks
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Level 15

If I pay off parent's mortgage (75K), will either of us be liable for any taxes on this after I transfer money into their account so they can close their mortgage? Thanks

You don't owe gift tax unless your total lifetime gifts are more than $5.4 million, and the recipient does not owe tax (except for certain foreign transactions).  Gifts more than $14,000 per person per year must be reported so the IRS can track them against your lifetime total but there is no tax owed.  The gift tax return is a separate form, not part of your annual tax return, and turbotax does not prepare it for you.  You can get it here https://www.irs.gov/uac/about-form-709

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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Level 12

If I pay off parent's mortgage (75K), will either of us be liable for any taxes on this after I transfer money into their account so they can close their mortgage? Thanks

May require a gift tax return to be filed...but wont cause any tax liability to you or your parents.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
Level 15

If I pay off parent's mortgage (75K), will either of us be liable for any taxes on this after I transfer money into their account so they can close their mortgage? Thanks

You don't owe gift tax unless your total lifetime gifts are more than $5.4 million, and the recipient does not owe tax (except for certain foreign transactions).  Gifts more than $14,000 per person per year must be reported so the IRS can track them against your lifetime total but there is no tax owed.  The gift tax return is a separate form, not part of your annual tax return, and turbotax does not prepare it for you.  You can get it here https://www.irs.gov/uac/about-form-709

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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