Posted on: 21st Jun, 2009 06:35 am
$125000 mortgage 0% interest with 10 years remaining. Father owned the house and sold to son and daughter in law and he holds the mortage. He wants to "gift the mortgage" to remove the loan from his estate.
How can this be done ... Is this limited to $11000/year per person gift tax rule and do forms have to be filled out?
How can this be done ... Is this limited to $11000/year per person gift tax rule and do forms have to be filled out?
Hi vshawz,
"...he holds the mortage. He wants to "gift the mortgage" to remove the loan from his estate."
If the father holds the mortgage, how is he going to 'gift' it to the son? Mortgage liability cannot be gifted. If the father wants his son to take over the responsibility of the loan and make the payments, he needs to get the property refinanced in his son's name. Through refinance, he can remove the loan liability from his estate.
"...he holds the mortage. He wants to "gift the mortgage" to remove the loan from his estate."
If the father holds the mortgage, how is he going to 'gift' it to the son? Mortgage liability cannot be gifted. If the father wants his son to take over the responsibility of the loan and make the payments, he needs to get the property refinanced in his son's name. Through refinance, he can remove the loan liability from his estate.
Will I have to pay interest to the IRS even if I don't charge interest on sale of inherited land?
Hi sandra!
Welcome to forums!
If you sell off the property and earn profit from the sale proceeds, then you would be liable for paying capital gains taxes.
Sussane
Welcome to forums!
If you sell off the property and earn profit from the sale proceeds, then you would be liable for paying capital gains taxes.
Sussane