2007-03-26 04:48:05 · 10 answers · asked by septempber 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
what about if i had a mortgage in my name but they actually paid it off
2007-03-26 04:59:07 · update #1
Expenses paid on your behalf by your parents is considered a gift, and gifts are never considered taxable income to the recipient. The payments that your parents made toward your mortage are also considered a gift to you, but there's more:
As far as the IRS is concerned, your parents gave you a "gift" that you immediately put toward the mortgage payments. Because you were legally liable for the loan (which is one of the requirements for deducting home mortgage interest), any mortgage interest that your parents paid is actually deductible by you on Schedule A if you choose to itemize.
2007-03-26 06:03:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Money spent by your parents for you support is not taxable income to you. It's only used to determine if they can claim you as a dependent. In the usual scheme of things if they paid more than half of your support they can claim you as a dependent as long as the other requirements are met.
If they paid off your mortgage for you, that's a non-taxable gift to you. However depending upon the amount of the mortgage payoff THEY may have a Gift Tax event and will be required to file a Gift Tax return and pay any Gift Tax due.
2007-03-26 04:56:22 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If your parents are giving you money as a gift, then no, you aren't liable for taxes on it. That would include if they pay your mortgage.
They can each give you $12,000 per year without having to file a gift tax return. Even if they give you more than that, they probably would not owe a gift tax.
2007-03-26 13:58:25 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You are not liable, but they may be.
the limit for gifts is $12,000. Which means your parents may each give you $12000 a year without them being liable for tax. the $12,000 per parent limit includes any payments they made toward your martgage as well.
2007-03-26 09:17:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
new child of divorced, separated or single mum and dad: in basic terms the custodial be certain can declare the new child. It does not count variety who's paying new child help. The custodial be certain is the be certain with whom the new child lived for the longer volume of time based on the nights spent. the different be certain is the non-custodial be certain. Non-custodial be certain can declare the new child provided that the custodial be certain signs and indications a launch sort 8332 or there's a courtroom order assembly the IRS requirement. With sort 8332, the noncustodial be certain gets exemption deduction and new child tax credit, yet not the pinnacle of kinfolk status and EITC. Even after signing sort 8332, the custodial be certain is head of kinfolk and get EIC and any new child care credit. The courtroom order or decree or separation contract issued after July 2, 2008 can not function written assertion to launch the declare of custodial be certain that noncustodial be certain ought to get launch sort 8332 signed by way of the custodial be certain..
2016-10-19 23:15:51 · answer #5 · answered by ? 4 · 0⤊ 0⤋
More than likely no. It is a gift from your parents, which is not taxable to you, but if they gave you more than $12,000 each in the year, they would need to file a gift tax return.
2007-03-26 05:06:07 · answer #6 · answered by Anonymous · 0⤊ 1⤋
If it is savings they will have already paid tax on it and it is their right to give it to you as a gift!
2007-03-26 04:51:38 · answer #7 · answered by JustJem 6 · 0⤊ 0⤋
No..........best not to mention it again cause it might give this goverment an idea to bring it in force!
2007-03-26 04:52:18 · answer #8 · answered by mikeodonagh 3 · 0⤊ 2⤋
Nope...
2007-03-26 04:51:38 · answer #9 · answered by Anonymous · 0⤊ 0⤋
no you're not. but try to be more independent
2007-03-26 04:53:23 · answer #10 · answered by maraesa1000 5 · 0⤊ 1⤋