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URL:  https://boards.fool.com/can-i-avoid-the-taxes-on-the-interest-by-gifting-32305469.aspx

Subject:  Re: question Date:  7/6/2016  11:14 AM
Author:  ptheland Number:  124336 of 132875

can i avoid the taxes on the interest by gifting him the interest money on a yearly basis

No.

Even if he made no payments at all, you'd still have to deal with imputed interest on the loan at a prescribed interest rate similar to the rate stated in your mortgage.

The only way to eliminate interest income on your return would be to eliminate the loan itself - to make a gift of the entire mortgage.

--Peter
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