My client's son owes $18,000 on a student loan. If my client pays off the loan will she have to file a gift tax return or is this not considered a gift?
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Student Loan Payoff
How old is the son?
Does the client have a spouse, and could each write a check for less than $12,000, thus avoiding the gift tax? Or perhaps $12000 this year and balance next year..... -
The only exception to the gift tax rule is if the money were paid directly to the school. Paying off a loan that was used for school does not qualify for the exclusion from gift tax.Comment
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