What is the name of your state? Illinois
My Aunt has decided that she is going to pay off the (primary home) mortgages for all of her family members this year.
At this time, my mortgage note has a balance owed of over $280K
I'm not sure, but what I've read in this forum would suggest that she will (more than likely) have to file and pay a Gift Tax as her generous gifts to all of us will probably exceed the $1,000,000 limit.
But as a recipient of this one-time gift, will I have to pay Federal or State taxes on this?
And if so, is there a way to structure things so that I can minimize how much I'll need to pay?
Ironically, if I need to pay at my current income tax rates (35% Federal and 3% State), I'll probably have to take out a new mortgage on my home to pay the taxes on my mortgage being paid off!
Thank you for any assistance.
My Aunt has decided that she is going to pay off the (primary home) mortgages for all of her family members this year.
At this time, my mortgage note has a balance owed of over $280K
I'm not sure, but what I've read in this forum would suggest that she will (more than likely) have to file and pay a Gift Tax as her generous gifts to all of us will probably exceed the $1,000,000 limit.
But as a recipient of this one-time gift, will I have to pay Federal or State taxes on this?
And if so, is there a way to structure things so that I can minimize how much I'll need to pay?
Ironically, if I need to pay at my current income tax rates (35% Federal and 3% State), I'll probably have to take out a new mortgage on my home to pay the taxes on my mortgage being paid off!
Thank you for any assistance.