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.