Gift tax on 150.000?

Question

does anyone know how much the gift tax would be if i gave a relative 150.000 to pay off their mortgage?

Answer 1

You have to pay the gift tax on any amount over $12,000. This definitely applies. The rate varies from 18% to 45% depending on how much you give. At $150,000 it maxes out at 30%.

Answer 2

You would be better off purchasing the house from the relative.  There is also probably a way to set up a family trust that would alleviate some of the taxes.  You should speak to a tax attorney before doing anything.  That's a lot of taxes to pay.