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#1
08-21-2005, 10:39 AM
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paying off my parent\'s mortgage..help needed
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.
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#2
08-21-2005, 11:05 AM
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Re: paying off my parent\'s mortgage..help needed
Just pay it off as the bills come due. If it's been refinanced anytime in the last 10 years the rate is so low, you'll do better keeping the money and investing it elsewhere.
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#3
08-21-2005, 11:07 AM
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Re: paying off my parent\'s mortgage..help needed
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.
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#4
08-21-2005, 11:09 AM
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Re: paying off my parent\'s mortgage..help needed
[ 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
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#5
08-21-2005, 11:13 AM
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Re: paying off my parent\'s mortgage..help needed
Why not just write the check to the mortgage company?
Is paying a bill for a parent really considered a gift? (yes, I'm asking)
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#6
08-21-2005, 11:18 AM
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Re: paying off my parent\'s mortgage..help needed
[ QUOTE ]
Why not just write the check to the mortgage company? Is paying a bill for a parent really considered a gift? (yes, I'm asking) [/ QUOTE ] if ur audited for some dumb reason the IRS can make anything into anything...if u write it to the morgage co its easier than getting around giving it to your parents, there r some ways of doing this that u get a tax break in the whole sum like say if you "invest" in thier home - joint own it/etc. There is too much to type here
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#7
08-21-2005, 11:20 AM
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Re: paying off my parent\'s mortgage..help needed
[ QUOTE ]
Just pay it off as the bills come due. If it's been refinanced anytime in the last 10 years the rate is so low, you'll do better keeping the money and investing it elsewhere. [/ QUOTE ] the thing is that my mom is simple folk and i want to help her out financially, but she isnt really crazy about anyhting, and really loves her 450/wk daycare job. her intestest rate is 6.5%, do you still think its better to pay monthly and invest, or to pay it off as a whole. obviously, she is for the latter, being simple folk.
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#8
08-21-2005, 11:23 AM
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Re: paying off my parent\'s mortgage..help needed
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.
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#9
08-21-2005, 11:23 AM
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Re: paying off my parent\'s mortgage..help needed
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.
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#10
08-21-2005, 11:25 AM
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Re: paying off my parent\'s mortgage..help needed
[ 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
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