paying off my parent's mortgage..help needed - Page 2

MrTrik · #1 08-21-2005, 11:07 AM

A friend did this once. He wrote it up as a long term loan to be paid back when they had the means. It was a simple one page write up that his parents and he signed. The intention all along was that he'd never be paid back. But he thought he'd be covering his butt if he did it that way. I dunno on that either way though.

peachy · #2 08-21-2005, 11:09 AM

[ QUOTE ]
its currently at 50k left on their mortgage. Can i jsut write them a check for 50k or will this incur 'gift tax'? please help.

[/ QUOTE ]

i believe it would but ive been out of that part of the finances loop for about a year. Only 10k would go towards gift if i remember right...the rest is taxed...

there are other ways around it

KaneKungFu123 · #3 08-21-2005, 11:23 AM

Isnt the USA, land of the free, the greatest country on Earth...

what a land where you have to pay a tax to give your money that has already been taxed to someone else.

peachy · #4 08-21-2005, 11:25 AM

[ QUOTE ]
Isnt the USA, land of the free, the greatest country on Earth...

what a land where you have to pay a tax to give your money that has already been taxed to someone else.

[/ QUOTE ]

dont even get me going on this...i have money thats been taxed THREEEEEEE times....and gift tax...land appreciate type taxes and inheritence r what i hate with a PASSION

Rockatansky · #5 08-21-2005, 04:40 PM

[ QUOTE ]
[ QUOTE ]
Isnt the USA, land of the free, the greatest country on Earth...

what a land where you have to pay a tax to give your money that has already been taxed to someone else.

[/ QUOTE ]

dont even get me going on this...i have money thats been taxed THREEEEEEE times....and gift tax...land appreciate type taxes and inheritence r what i hate with a PASSION

[/ QUOTE ]

OMG the government is so lame. You had the foresight to be born into a rich family and this is how they treat you?? Unbelievable.

RunDownHouse · #6 08-21-2005, 11:27 AM

I think the tax-free gift amount is $11k now, so you should be able to pay it off over the next 5 years. If you want to do it faster, then all you have to do is figure out if its worth as much as the tax.

As a side note, it seems like you've always got a ton of financial questions and a ton of cash. You should seriously think about hiring a financial advisor. Even if its just a one-time thing, they could probably set you up with some good plans and teach you a lot.

KaneKungFu123 · #7 08-21-2005, 11:50 AM

this is a good idea, unforchantly i live overseas. when i come back to the states for xmas ill look into this.

RunDownHouse · #8 08-21-2005, 11:53 AM

I knew you were overseas. Obviously its best to meet face-to-face, but any good financial advisor should have no problem working over the phone as well.

Before you come back, do a little reading on FAs, what they do, and what to look for in one. Then maybe you can find one you like while you're over here and maintain a relationship from Thailand. As a general rule, stay away from commission-based advisors and find a fee-only firm.

cardcounter0 · #9 08-21-2005, 11:51 AM

pay it off 10k a year at a time.

Lawrence Ng · #10 08-21-2005, 02:30 PM

[ QUOTE ]
Isnt the USA, land of the free, the greatest country on Earth...

what a land where you have to pay a tax to give your money that has already been taxed to someone else.

[/ QUOTE ]

It's even worse in Canada if you work abroad and bring money back here.

Anyways, never thought I'd actually commend you for something but I do here. You're an ass, but at least your heart is in the right place.

My only suggestion is that if you want to save on taxes, just help your parents pay it off slowly. If the taxes incurred are greater than the cummulative interest, then it wouldn't be wise to pay it all off at once.

Lawrence