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I owe my parents $100,000 on a private mortgage. They live on retirement income of about $70,000. If I pay them off a lump sum amount, what would be the approximate percentage that they would have to pay in taxes?


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The BIDaWIZ Team's Answer:

If your parents provided a loan to you in the form of a mortgage and it is well documented, then that is a return of capital to your parents and not taxable. The only portion that may be taxable is the interest that is due on the loan.

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