Is this taxable ?

A father pays for his adult son's mortgage ( the properity is in the son's name), private school fees for the son's children, cars, memberships etc. .Are  these payments income in the son's hands and therefore taxable?  (The son use the equity in the property to obtain a line of credit.) The question is somewhat urgent with a divorce pending

Answer

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No, these payments are not taxable, regardless of who was making them (i.e. the son could not deduct any of these either). These are all personal items, and the father paying for them is simply a gift to the son.

I don't mean to offend, but perhaps if you are asking questions such as this you are not qualified to be preparing income tax returns.

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Geobie07 , CPA

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