Paying a Family Member’s Debt

A question often asked is whether there are any tax implications to paying a debt for a family member.  The answer is yes.

Every year, a person can give a gift up to $14,000.00 to one person without having to report the transaction to the IRS.  Any amount above the $14,000.00 must be reported to the IRS on Form 709.

In addition, for 2015, you can transfer up to $5.43 million federal tax free over a lifetime.

If you are having tax issues, contact our law office at 816-524-4949 or Choorfar@Hoorfarlaw.com.

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