Joined: 10 Jun 2015
Location: Vancouver, WA
WILL A GIFT OF MONEY CONSTITUTE AS INCOME TO MY SON?
I wish to gift my son the sum of $100,000 to pay down on his mortgage.
He refuses to accept because he said it constitutes as income.
Is that correct?
He said he'd rather wait until death and collect under "Payable On Death" from my bank.
We live in different states.
Fri Jun 19, 2015 10:22 pm
oldguy Senior Member
Cash: $ 717.80
Joined: 21 May 2006
quote: refuses to accept because he said it constitutes as income.
No - the gift is not income, if there is any gift-tax it would be paid by the giver. But there is a $5.43M gift exclusion, so $100,000 is way below the exclusion.
But why would he use it for his mortgage? A gift of $100,000 is the opportunity of a lifetime for a young person, invest in the SP500 and don't touch it for 30 years, it should be about $2,200,000. And, of course, the money is always there, in reserve, if he needs help in making his mortgage payments.
BTW, that's why lottery winners are, on average, broke in 7 years - they are unable to focus on sensible investing.
Sat Jun 20, 2015 12:06 am
blixet Preferred Member
Cash: $ 32.55
Joined: 28 Apr 2013
Location: Southern California
Why create a new screen name and ask about the same situation again? And 10 seconds on Google solves this query. Why not have your son look it up for his self if he's so worried? Or you for that matter. Are total strangers on the internet a better resource?
Information is more valuable sold than used – Fischer Black