is there no way you could buy out the bank side so you become the lender and therefore you set the interest rate?
is there no way you could buy out the bank side so you become the lender and therefore you set the interest rate?
This is likely the best legal way to do it. I'd get a lawyer that also does taxes to write up the mortgage and do the title stuff. It'll make it more legit. You might not be able to set the mortgage rate at zero percent without issues. But then you could gift the max amount over how many years you need.
This is likely the best legal way to do it. I'd get a lawyer that also does taxes to write up the mortgage and do the title stuff. It'll make it more legit. You might not be able to set the mortgage rate at zero percent without issues. But then you could gift the max amount over how many years you need.
I like this idea, will talk to my accontant Tuesday about doing exactly this.
I like this idea, will talk to my accontant Tuesday about doing exactly this.
Goof luck. I know a few people that gifted houses to their children by co-signing loans and paying them, but I'm not sure how they get their name off the title without tax consequences.
Goof luck. I know a few people that gifted houses to their children by co-signing loans and paying them, but I'm not sure how they get their name off the title without tax consequences.
To add to what Fumduck said-
If the family “member” is actually a couple and if you are a couple you can each gift to each of them the $15,000 annually.
But also Before you embark on this path study very hard the social/psychological impacts to your relationships. Many times adult dependents become very distraught with their benefactors. And what happens if you pay off their indebtedness and then they go out and buy a new car (for example?). Will you or your spouse then feel betrayed? What is they then get a reverse mortgage on their house? Or refinance the house and take out cash and in turn give that to someone else for say a down payment on a car or house; how will you feel then?
To add to what Fumduck said-
If the family “member” is actually a couple and if you are a couple you can each gift to each of them the $15,000 annually.
But also Before you embark on this path study very hard the social/psychological impacts to your relationships. Many times adult dependents become very distraught with their benefactors. And what happens if you pay off their indebtedness and then they go out and buy a new car (for example?). Will you or your spouse then feel betrayed? What is they then get a reverse mortgage on their house? Or refinance the house and take out cash and in turn give that to someone else for say a down payment on a car or house; how will you feel then?
This is good advice. Most people who have debt will take on more after a windfall because their debt isn't caused by poverty, it's caused by overspending.
This is good advice. Most people who have debt will take on more after a windfall because their debt isn't caused by poverty, it's caused by overspending.
No idea what you're talking about.
But I've talked to you before, and you seem like a nice, charitable guy.
You ever thought about setting up a 501c3 Not-for-profit to benefit local homeowners struggling in this unprecedented era of inflation and housing insecurity?
Might be something to look into.
No idea what you're talking about.
But I've talked to you before, and you seem like a nice, charitable guy.
You ever thought about setting up a 501c3 Not-for-profit to benefit local homeowners struggling in this unprecedented era of inflation and housing insecurity?
Might be something to look into.
Maybe make them a personal loan, they never repay it,you write it off as bad debt. I’m not a tax accountant tho, you should find a good one.
Maybe make them a personal loan, they never repay it,you write it off as bad debt. I’m not a tax accountant tho, you should find a good one.
This will generate taxable income for them. Bad idea
This will generate taxable income for them. Bad idea
FWIW, a CPA is the Right source of information (I'm in the middle of similar) about how to do this. Lawyers, unless they specialize in tax law, aren't going to be much use.
In my case it's under $60k and can be covered by my spouse and I and with another married couple. But using several people to get the $$$ up would be the technical answer based on what I've learned. Can't do it in one year because there aren't enough trusted individuals? Spread it out over a couple/few years.
As for "under the table" gifts, that's a tricky thing for the receiving party (bar of gold, cash gift, whatever). They have to account for where that money came from and/or why there was suddenly more disposable income than previously without a change in income unless they're good at hiding its use. I've been on the receiving end of that before and spread it out over a year with grocery purchases (most cash as that was the gift, some card to keep up appearances). We all know how everyone around us would react if they were given $5k in cash... most would blow it immediately and post about it on social media while never once thinking about the potential consequences/ramifications.
FWIW, a CPA is the Right source of information (I'm in the middle of similar) about how to do this. Lawyers, unless they specialize in tax law, aren't going to be much use.
In my case it's under $60k and can be covered by my spouse and I and with another married couple. But using several people to get the $$$ up would be the technical answer based on what I've learned. Can't do it in one year because there aren't enough trusted individuals? Spread it out over a couple/few years.
As for "under the table" gifts, that's a tricky thing for the receiving party (bar of gold, cash gift, whatever). They have to account for where that money came from and/or why there was suddenly more disposable income than previously without a change in income unless they're good at hiding its use. I've been on the receiving end of that before and spread it out over a year with grocery purchases (most cash as that was the gift, some card to keep up appearances). We all know how everyone around us would react if they were given $5k in cash... most would blow it immediately and post about it on social media while never once thinking about the potential consequences/ramifications.
loan them the money unsecured at the minimum allowable interest (i think irs rules are 1.8%/) then gift them the 15k a year to forgive the principle and interest. If you are a married couple you can gift them twice that and you can also forgive the loan upon your death. .
Thirdly, you can buy their home and gift it to them as part of your estate but it will still factor into your estate for tax thresholds (currently 10 million)
loan them the money unsecured at the minimum allowable interest (i think irs rules are 1.8%/) then gift them the 15k a year to forgive the principle and interest. If you are a married couple you can gift them twice that and you can also forgive the loan upon your death.
.
Thirdly, you can buy their home and gift it to them as part of your estate but it will still factor into your estate for tax thresholds (currently 10 million)
I'll look into this.
I'll look into this.
I think you get 1 tax free gift to a family member <$50k.
You want to talk to an estate planner. Its like a lawyer/tax/finance guy.
Don't go if he's poor. The smart ones know all the loopholes.
I think you get 1 tax free gift to a family member <$50k.
You want to talk to an estate planner. Its like a lawyer/tax/finance guy.
Don't go if he's poor. The smart ones know all the loopholes.
How are you triggering a gift tax? You can gift $16k a year per spouse per recipient without even needing to file paperwork. Above that it counts towards your lifetime gift limit which is in the 8 figures before it becomes taxable for anyone.
It's not wages, it's a gift.
How are you triggering a gift tax? You can gift $16k a year per spouse per recipient without even needing to file paperwork. Above that it counts towards your lifetime gift limit which is in the 8 figures before it becomes taxable for anyone.
It's not wages, it's a gift.
just slap them in the face.... no really
see they can sue you for personal injury, then you settle out of court. Personal injury settlements CANNOT be taxed. Some small court costs and it's done. Don't involve lawyers.
just slap them in the face.... no really
see they can sue you for personal injury, then you settle out of court. Personal injury settlements CANNOT be taxed. Some small court costs and it's done. Don't involve lawyers.
... I like this!
... I like this!
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