forgiven debt from a relative

[kymm87]

My grandmother loaned me money to purchase a house she owned. I paid a monthly mortage and she gifted me the $12k maximum amount each year which was taken off the principal each year. She passed away, and in her Will she forgave the remaining debt and the property is now mine. Will I be taxed on the forgiven loan as income?

 

[LdiJ]

My grandmother loaned me money to purchase a house she owned. I paid a monthly mortage and she gifted me the $12k maximum amount each year which was taken off the principal each year. She passed away, and in her Will she forgave the remaining debt and the property is now mine. Will I be taxed on the forgiven loan as income?

No, because it was an inheritance.

 

[ShyCat]

U.S. law only