Home Ownership

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Jul 3, 2012 - 10:59AM

Re: Mortgage paid off by a family member

The simple answer is yes and the parent will have to file a gift tax return. The answer to the follow-up question, "Will they have to pay any gift taxes?" really depends on their previous gifting history - unless they have already made gifts in excess of $5,000,000 the answer should be no. If the parent is not a US citizen, however, the answer changes and there are filing requirements that you will have to comply with as the recipient of the gift. I am happy to have you contact me if you have any additional questions.

Neil L. Cohen
Woodman & Eaton, P.C.
Concord, MA 01742
ncohen@woodmaneaton.com

Zip Code: 01742

Andrew Schwartz CPA

Jul 3, 2012 - 5:25PM

Re: Mortgage paid off by a family member

Thanks Neil.

More information about filing a Gift Tax Return, Form 709, is available at:

www.irs.gov/pub/irs-pdf/f709.pdf for the form
or www.irs.gov/pub/irs-pdf/i709.pdf for the instructions.

Foreign gifts and inheritances need to be reported to the IRS on a Form 3520 - www.irs.gov/pub/irs-pdf/f3520.pdf for the form
or www.irs.gov/pub/irs-pdf/i3520.pdf for the instructions.

Neil has helped my firm's clients with both of these forms.

Zip Code: 01801