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

Incentive stock option

Option meeting tax law tests that defers tax on the option transaction until the obtained stock is sold.

More terms