mom and I are on the property deed but she is not on my mortgage. Can she make a contribution to the mortgage without tax implications?

Forum|Forum|3 years ago
April 22, 2022
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Best answer by Bsch4477

Her contribution to the purchase of the home with her as partial owner has no tax or gift consequences. It is merely her investment in the home. But if you deduct her portion of the mortgage which she has no liability for, the money that she gave towards the mortgage is a gift to you. An amount over $15,000 ($30,000 if given with a spouse) requires reporting with form 709 which is completed and sent by mail separately from her tax return. Because of the large gift/estate tax exemption she won’t owe tax on that gift.

Bsch4477

Since she is not liable for the mortgage she can’t deduct the interest payments. Her payments would be considered a gift to you and you would deduct the interest.

BS6067Author

Scenario: Property cost $240,000 50/50 split ownership; Mom contributed $100,000 owes $20,000 . My mortgage is $140,000 - when she gathered balance Mom will pay $20,000 towards mortgage so we each pay $120,000. Is that $20,000 a gift or considered the balance to her half of the property? Deed is in both our names and check is made out to the bank. If it is a gift who pays gift tax?