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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33769
Experience:  15 years real estate, Realtor. Landlord 26 years
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I hold mortgage on my son's house. He and s wife are selling

Customer Question

I hold mortgage on my son's house. He and his wife are selling the house, relocating to NC,
where they are having another house built. I would like to know if it is possible to gift the remaining amount of the mortgage to them when the house sells and what is involved. Thank you.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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Can you tell me how much the mortgage is?

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Would you want to gift it to both of them, or just son?

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thanks

Barrister

Customer: replied 1 year ago.
Remaining mortgage is around $64000. Title is in my son's name only as house was purchased prior to their marriage.
Expert:  Barrister replied 1 year ago.

Ok, if you wanted to gift son the entire amount, then there is no problem with you doing so, you would just need to use up a small portion of your "lifetime gift tax exemption" of $5.34 million dollars so you don't incur any gift taxes on the gift.

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Anything over the $14K annual exclusion would be subject to gift taxes, but if you file an IRS Form 709 in the year of the gift for anything over the $14K, you can avoid paying any taxes on the gift. So here, you would be filing the Form 709 for $50K and then you could make the gift to son completely free of any taxes.

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If you feel your original question and any related follow ups have been answered, I would very much appreciate a positive rating on the answer I have provided so I receive credit for my work. If you have a new question the JustAnswer folks require that you start a new question page, but you can request me by putting "For Barrister" in the caption and they will get it to me.

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thanks

Barrister

Customer: replied 1 year ago.
Barrister was very helpful with a quick response.
Expert:  Barrister replied 1 year ago.

Thanks very much. Glad to help any time.

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All the best to you and yours.

Barrister

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