Question

Gift Tax Considerations for a $220k Lump Sum Mortgage Payment Gift from a Friend

Forum|Forum|2 years ago
May 6, 2024
2 replies
0 views

My friend plans to pay $220,000 directly to my mortgage company as a gift, but I'll still have mortgage payments to make. Would I need to pay gift tax on this amount?

M

Mike9241

no. true gifts are not taxable to the recipient, but your friend will need to file a gift tax return.

X

xmasbaby0

Employee

Gifts given to family members, friends or other individuals are not deductible. Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($17,000 per individual) imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax. In 2024 that yearly limit will increase to $18,000.

TurboTax does not support Form 709. It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

P

pk12_2

Employee

@guri0121 , agreeing with my colleagues @Mike9241 & @xmasbaby0 , I would just like to add that if the donor ( of the gift ) is not a US person ( citizen/ GreenCard / Resident for Tax Purposes ), then gift amounts >= US$100,000 would require the recipient to file a form 3520. This just informational; filing and has NO tax implications. TurboTax does not support this form and one would need to download this form from the IRS, fill out and send it in per instructions.

Hope this helps