What portion of the mortgage payment on a joint property is a gift?

[DmitriQ]

Hi,

I bought a property with my mother last year, she provided 80% of the down payment, and I pay the mortgage (it's in my name only).

I understand that 30% of the down payment amount constitutes a gift from her to me, and 50% of some part of the mortgage payment, a gift from me to her. But what part is it? Just the principal? Interest? Property tax? (I am assuming probably not)

In case it makes a difference: we're 50-50 Tenants in Common, not Joint Tenants.

And am I right in thinking that as long as the difference between the two is under the 15k limit, nothing needs to be reported?

Thanks

[RobertG]

It depends who lives there.  If you live there and are deducting the interest and taxes, the gift to her is just the principal.

You are correct about the 15K limit.

Keep in mind that even if you go over the limit and have a filing requirement, you don't pay gift tax until you go over the lifetime limit of $11.58 Million.

[Anonymous]

are you sure your mother' name is not on the mortgage?   I ask because most lenders require that mortgage documents include the signatures of all the parties who hold title in a tenants in common property. In other words, you must all take out the loan together. Otherwise, if a lender made the loan to only one party or "tenant", only one person's portion of ownership would act as security for the loan. Lenders would not be able to seize the entire property in the event of default 

also as tenants-in-common if one party dies the other doesn't automatically inherit the deceased party's interest.  

[DmitriQ]

She is the only one who lives there. I do deduct the interest and taxes.

Under what circumstances could the interest be considered a gift?

[DmitriQ]

Huh, that's interesting, and makes sense from the lender's perspective.

I am definitely the only one on the mortgage though.

(Having checked, I am the only borrower on everything application-related, and everything to do with servicing the mortgage, but she is on the deed of trust, which I guess makes sense)

[fanfare]

Since gifts are not taxable IRS doesn't care how much your mom is giving you, for whatever purpose.

a gift has no strings attached, by definition. otherwise it is not a gift.