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Old 08-17-2008, 09:31 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,965 times
Reputation: 249

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Quote:
Originally Posted by GeorgiaGirl2 View Post
I would not have the funds transferred directly to your HELOC. You will need a paper trail to document where the money came from as well as documentation to show that you yourself paid off the HELOC. I would have the funds transferred to your savings or money market account. Then after the funds have cleared, I would have the bank issue a Cashier's check payable to the company who holds your HELOC to payoff the account. If you want the HELOC account closed after that, you will need to surrender the checks or credit card tied to the account.

Yes, you will have to report the incoming funds received from your parents to the IRS, even if is a gift.
i would not do this, you can already see where you would have to pay income tax. the point is to not have the paper trail leading to you, lol.
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Old 08-18-2008, 05:20 PM
 
Location: Athens, GA
76 posts, read 369,464 times
Reputation: 56
Quote:
Originally Posted by brokerdave View Post
i would not do this, you can already see where you would have to pay income tax. the point is to not have the paper trail leading to you, lol.
Why brokerdave, you make it seem as though Arcadio should attempt to get out of paying the taxes on this transaction. You're only kidding, right?
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Old 08-18-2008, 05:21 PM
 
Location: Athens, GA
76 posts, read 369,464 times
Reputation: 56
Quote:
Originally Posted by Jaded View Post
Although the OP has already said he is going to seek the advice of a CPA - an excellent idea BTW - I'm curious as to why you believe that he'll need to "show" he's paid off the HELOC himself??? This isn't accurate. And, as far as explaining the "paper trail"...that's not correct either.

Again, just wondering where you got this info??
It's not required, but personally I would want to have control over the documentation, especially with the funds coming from overseas.
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Old 08-19-2008, 12:39 AM
 
300 posts, read 1,084,121 times
Reputation: 112
Another angle you might look at (may or may not be appropriate to your situation) is to have your parents give money as payment-in-kind to something else.

For example, let's say you were putting $10k/yr into a 529 for a child. If your parents were to donate to that 529 instead of you, then that frees up $10k for that year that you can throw at the HELOC.

Just an option.
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Old 08-19-2008, 05:26 AM
 
Location: Cold Frozen North
1,928 posts, read 4,522,595 times
Reputation: 1266
Quote:
Originally Posted by grannynancy View Post
I think any transaction over 10,000 will be reported by the bank to the IRS.
That's true, but perhaps breaking the money transfer into multiple smaller chunks over a period of time wouldn't get noticed. There's always a way around obstacles.
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