Posted on: 29th Aug, 2010 01:50 pm
My sister wants to help me pay off some loans and I offered to quit claim one of my fully paid property to her son; this way, we can keep the property in the family versus selling it.
Would it make a difference if she gives me the money directly or should I just let her pay my credit card bills herself?
Am I violating any tax law with this transaction? I'm aware I need to file gift tax since it is over $12,000.00. Thanks for your immediate response.
Would it make a difference if she gives me the money directly or should I just let her pay my credit card bills herself?
Am I violating any tax law with this transaction? I'm aware I need to file gift tax since it is over $12,000.00. Thanks for your immediate response.
Hi mariaj,
Your sister can either pay you the money directly or can pay your credit card bills. If she pays you the money directly, then she might be liable for paying the capital gains taxes. In that case, it would be better if she could pay your credit card bills directly. I don't think you would be liable for any tax law violation if you go for this transaction.
Thanks
Your sister can either pay you the money directly or can pay your credit card bills. If she pays you the money directly, then she might be liable for paying the capital gains taxes. In that case, it would be better if she could pay your credit card bills directly. I don't think you would be liable for any tax law violation if you go for this transaction.
Thanks