Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
jlivers01
New Member

If my mother in law pays off a car loan will that be something she and I both will have to claim?

 
1 Reply
xmasbaby0
Level 15

If my mother in law pays off a car loan will that be something she and I both will have to claim?

Neither one of you reports it.  Paying off a car loan is not deductible.  A gift to an individual is not deductible, so if she paid off your car for you, it is not taxable to you nor deductible for her.  Generous--yes.  But not deductible.  If she gave you over $14,000 to pay off the car, she may need to fill out a gift tax form 709.  She will not have to pay tax for the gift but any gift over $14,000 is added to the amount you are allowed to gift over your lifetime.  (About $5.4 million before it becomes taxable)

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v