paying off my parent's mortgage..help needed

[RunDownHouse]

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.

[peachy]

[ QUOTE ]
Under the current estate and gift tax regime, you have and exclusion of 1.5 million. (It will increase to 2 million in '06,'07 and '08 and 3.5 million in '09) You will not have to pay any taxes on the 50k, but you still have to file. 28k will be deducted from your 1.5 million exclusion amount(You get an annual 11k per donee exemption).

You could get 44k to them w/o having any tax consequences at all by giving 11k each to both your mother and father on both Dec. 31 of this year and Jan. 1 of next year.

[/ QUOTE ]

THANK GOD!!! i love u!!! someone who knows thier stuff!! I was beginning to think i was alone in my lil finance world...glad u had exact #s for him...i had heard it increased from 10k and was sure it was still right around it but i didnt know plus its 11am and i havent slept yet


PS: to the org poster...ur a sweetheart for helping ur parents like that

[Nigel]

[ QUOTE ]
Under the current estate and gift tax regime, you have and exclusion of 1.5 million. (It will increase to 2 million in '06,'07 and '08 and 3.5 million in '09) You will not have to pay any taxes on the 50k, but you still have to file. 28k will be deducted from your 1.5 million exclusion amount(You get an annual 11k per donee exemption).

You could get 44k to them w/o having any tax consequences at all by giving 11k each to both your mother and father on both Dec. 31 of this year and Jan. 1 of next year.

[/ QUOTE ]

I think that's the best way. Make payments through the rest of the year, then give them the remaining 40 some thousand in the fashion described above. 2 days that are technically in 2 different years, and as 4 separate "gifts", with no tax problems.

[KaneKungFu123]

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

[cardcounter0]

pay it off 10k a year at a time.

[RunDownHouse]

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.

[mmbt0ne]

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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 ]

Oh my God. Your parents had you almost 20 years before being close to paying off their mortgage? What selfish assholes.

[touchfaith]

[ QUOTE ]
[ 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 ]

Oh my God. Your parents had you almost 20 years before being close to paying off their mortgage? What selfish assholes.

[/ QUOTE ]

Ok, that was the 'in your face' of the year...

nc

[Lawrence Ng]

[ 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

[DavidC]

Have them make a neteller account, transfer through neteller, don't tell the government [censored]. [img]/images/graemlins/smile.gif[/img]

There might be something I'm missing here, though.