Gift tax - can a non-US parent pay for your mortgage as a gift?

USA Discussion in 'Individuals' started by Juliet10, Jan 11, 2018.

  1. Juliet10


    Jan 11, 2018
    Likes Received:
    My friend is a US Citizen (naturalized), they have dual citizenship with a SA country, her parents are not US citizens or residents. My friend currently has a property for which they pay mortgage (30 year US bank loan). Her parents are looking to gift her and pay for the remainder of the whole loan/debt either by several payments or lump sum.

    From her understanding a parent can gift up to $14K per year without incurring in a gift tax, but also a parent can gift no more than $1 or 2 million (not sure the exact number) in their lifetime or they will get a gift tax.

    If my friend's house is $200K and her parents wants to pay for the $200K as a gift either in several gifts payment or lump sum, will the parents have to pay a tax since the parents are not from the US or US citizens/residents?

    Are there any restrictions?
    Juliet10, Jan 11, 2018
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