Any tax implications if I paid off my parents' mortgage?
Hi all, I have a question about tax and mortgage. Do I need to file anything (e.g. gift tax exemption)? I have search through out the web and not finding any clear answers. Most of them is about giving the money so the other party will pay it off or inheritance or something else. I have also check out IRS website for the definition of a gift but it's not so clear.
I paid off my parents' mortgage by paying off the debtor. Does that still consider as a gift?
here's the rundown... in 2010 and 2011, you can exclude 13k per donor PER donee in gifted cash. i.e. you don't have to pay tax on the gift given.
example... you give a total of 52k to your parents. You can say that you gave your dad 13k, your mom 13k and then your wife gave 13k to your dad and 13k to your mom..then you would not have to pay any taxes on the gift. just fill out form 709.
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