Gift to pay off our mortgage.
My mother in law is wanting to give her daughter a one time sum that would in effect pay off the reminder of our mortgage. What are the legal and fiscal (IRS) implications of such action? by danlm339 from Miami, Florida. Jun 1st 2010
Gregorio Denny (GVDenny)
#257 ranked lender in California - 380 contributions
Note that I am not an attorney and this is not legal advice, but I believe, depending on the amount of the gift, it would be subject to the gift tax if above $13,000. As far as the effect on the mortgage, once it's paid off you would lose the deductions for mortgage interest but a paid off mortgage is a good thing these days, so I don't see a downside. Make sure to consult a CPA. Gregorio Denny --WeFixRates.Com --
Akali Dennie (adennie)
#54 ranked lender in Florida - 196 contributions
The advice that GVDenny has given is correct. But always consult a CPA to be 100% certain. Hope this helps.
Joann Grand (jgrand)
#9 ranked lender in Hawaii - 2 contributions
She should contact an attorney and / or CPA to discuss the laws pertaining to this matter.
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