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Guest

Hi,

Our son lost his job and is not able to make the mortgage payments on his home. The amount of the mortgage loan is 150000. We are aware of the fact that we cannot give him the money without having the taxes due on the money. Can he deed the home to us and then we payoff the mortgage loan?

jerry · Posted: Wed Dec 21, 2005 3:36 am Post subject: RE:

Hi,

You can offer $1,50,000 as gift to your son without having a tax liability. You will have to file a gift tax return, but you will have to pay the taxes only when you go beyond the lifetime tax exemption limit ($1,000,000). Your son being the recipient, he will not have to make the tax payments. If the lender forgives $150,000 which is the loan amount, then your son will have no obligation towards the mortgage repayment and he will have $150,000 as taxable income.

Merry Christmas Very Happy

Thanks,
Jerry

Guest

Thanks for your reply jerry; it has helped to ease off my tension. Merry Christmas to you too.

Guest

My husband and I are arranging to buy our first home and we have been offered a gift from my parents in the amount of 10,000 for this. What tax rules come into play with this gift amount?

Guest

Hi,

As per federal laws anyone can give up to the annual exclusion amount ($12,000 for 2006) to a person, every year, without facing any gift taxes, and without the recipient owing an income tax on the gifts.

Also any person can give up to $1,000,000 in gifts, total, in his lifetime, before starting to owe the gift tax.

Caron · Posted: Fri Jun 30, 2006 7:53 pm Post subject: RE:

Hi,

In case of a gift transfer, the person offering the gift has to pay the taxes provided the amount exceeds the limit as given by Gawen. So, you need not bother about the tax payments.

A gift is taxable only when its value in addition to the value of the estate goes beyond $2 million for 2006 through 2008. The amount will increase up to $3.5 million for 2009.

Thanks,

Caron.

Guest

Will the property tax go up as it would if it was a sale? The property is in California

Guest

If it was a sell then why are you calling it a gift?

It seemed from your post that the property tax was going to be up. So the tax will go up; no matter whether it is a sell or a gift? However are you talking about gift tax?

Guest

we were going to get a gift of $50,000 from a family member for our mortgage and they signed the gift letter. Now they can only giveus $20,000. We are going to get the rest of the funds from another famiy member. Do we have to get another gift letter signed, or can we just go ahead to notslow down closing?

jerry · Posted: Fri Nov 21, 2008 3:23 am Post subject:

Hi guest!

I think you can include both the gifts in one gift letter. But you should inform about it to the lender.

Thanks,

Jerry

sara · Posted: Sat Aug 01, 2009 3:02 am Post subject: Gift Tax exemption for 2009

Hi all,

For the year 2009, the IRS has increased the annual gift tax exemption limit to $13,000 per year, per person. A married couple can offer a gift of $26,000 to a recipient without having to pay the gift tax. Apart from this, any person can give up to $1,000,000 in gifts in his lifetime, before incurring any gift tax.

The IRS gift tax exemption limit also restricts the amount of money that can be placed in a college account for a child in any single year. This implies that one has to pay gift tax if his college account funds exceed the specified limit. However, Section 529 plan allows a person to offer gifts worth five years of their annual gift exemption into the plan in one shot. However, they cannot offer additional gifts to that child within the following five years.

Take care.

Guest

I am planning to buy my first home in the US pretty soon. My parents do not live in the US and they are going to send me the money for the purchase, the amount could be as much as $300k. I live in the US and I am not a US citizen.

Do I have any tax liability in this case?

Posted: Thu Sep 03, 2009 8:05 pm Post subject:

You will have to show the lender a gift letter stating that you received the money from your parents as a gift.

jveenstra · Posted: Fri Sep 04, 2009 11:11 am Post subject: Gift

As Sara noted above, anybody is allowed to give anybody a gift annually of $13,000 with no tax liability.
So, a mother could give a son $13,000 and the father could give the son $13,000 and if the son were married they could each give his wife $13,000 also.
This is September, so, you could actually give him $13,000 now, from the mother and father, and the new year is not too far away and in 4+ months you can give the same amounts for next year.

I'm sure all that covers more than he needs and you probabaly do not plan to give him all that is allwoed.

Guest

Would there be tax implications if i was gifted 50,000 by my parents in 2009?

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Offer gifts without having the liability of tax