Posted: Wed Dec 21, 2005 3:18 am Post subject: Offer gifts without having the liability of tax
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? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
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.
Posted: Fri Jun 30, 2006 6:21 pm Post subject: taxes
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? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
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. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
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.
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?
jerry
