Submitted By: Charles
Answered: June 8, 2015 8:10 am

What tax liability results if I pay off my son’s mortgage?

You have no income tax liability, but depending upon the size of the remaining balance you may face federal gift tax issues. Your son has no tax liability; your generosity in paying off his mortgage is a gift to him.

advertisement
Tax Glossary

First-year expensing (or Section 179 deduction)

A deduction of the cost of business equipment in the year placed in service.

More terms