• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Gift of money

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

vlh770

Junior Member
Michigan.
I am trying to find out what the taxes will be on someone if they pay off my house for me.
The amount is $120,000 and they are not related to me.
I cannot seem to find anything that addresses this specifically.
Even an estimated percentage would be helpful.
Thank you in advance.
 


LdiJ

Senior Member
Michigan.
I am trying to find out what the taxes will be on someone if they pay off my house for me.
The amount is $120,000 and they are not related to me.
I cannot seem to find anything that addresses this specifically.
Even an estimated percentage would be helpful.
Thank you in advance.
It would be a gift, so there would be no tax for you. The person giving you the gift would have to file a gift tax return, but there would also be no actual tax due for that person unless they have exceeded their lifetime exclusion for gifting (currently 1 million). However, it also will reduce the person's estate tax exclusion, so that is something for that person to consider.
 

vlh770

Junior Member
re

Thanks for the reply. Is there a chart or calculator somewhere that will give me an idea of how much the gift tax will be for the giver?

Also, the person giving the gift is not living in the USA or a USA citizen, how does this impact the situation?
 

LdiJ

Senior Member
Thanks for the reply. Is there a chart or calculator somewhere that will give me an idea of how much the gift tax will be for the giver?

Also, the person giving the gift is not living in the USA or a USA citizen, how does this impact the situation?
The that person would not be subject to US gift tax. You however would have to report the gift because it is coming from an overseas source and is above the level required for reporting.

Again, there would be no tax.
 

vlh770

Junior Member
re

That would be great, but I have read that in "special circumstances", the recipient is responsible for the tax. I was assuming this is one of those circumstances. I can't see the Government just letting it go and not collecting something.
True?
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top