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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 41004
Experience:  Texas lawyer for 30 years in Estate law
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My mother and i bought a house together in 2002, both of our

Customer Question

My mother and i bought a house together in 2002, both of our names are ***** ***** the deed and primary loan. I took out an equityline in 2007 in my name with her signature. She wants to pay off both the primary and the equityline. My sister is worried this ..."
Submitted: 11 months ago.
Category: Estate Law
Expert:  Dwayne B. replied 11 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today.

Is there a specific question with which I could assist?

Customer: replied 11 months ago.
My mother and i bought a house together in 2002, both of our names are ***** ***** the deed and primary loan. I took out an equityline in 2007 in my name with her signature. She wants to pay off both the primary and the equityline. My sister is worried this would be a gift and is trying to stop trasaction
Expert:  Dwayne B. replied 11 months ago.

And what's your question on that?

Customer: replied 11 months ago.
will this be considerd a gift to the irs and taxed as such
Expert:  Dwayne B. replied 11 months ago.

I'm going to opt out of this one. No need to reply, another expert should pick up shortly.

Expert:  RayAnswers replied 11 months ago.

Hi and welcome to JA. Ray here to help you today.

This would be a gift here.But the lifetime exemption for gifts to you is $5,450,000 here.So not taxes but if the payoff is over $14k it must be reported on her return.Again this is how IRA keeps track of the lifetime gift amount otherwise it is not taxable.

Expert:  RayAnswers replied 11 months ago.

Form to report the gift here.There is no reason not to do this, she just reports the information on next years return using this form.I would encourage her to do so here and make you the gift.Not your sisters business.

https://www.irs.gov/instructions/i709/ch01.html

I appreciate your patience today.If you can positive rate it is always much appreciated.