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Property taxes payment by Gwen for benefit of Quincy

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Due to substantial medical expenses, Quincy is delinquent by $11,000 in paying the property taxes on his home. To avoid an adverse effect on his credit rating, Quincy's mother, Gwen, offers to pay the property taxes. What are the tax consequences to Quincy and to Gwen:

a. If she makes the payment?

b. If she gives the $11,000 to Quincy and he makes the payment?

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Solution Summary

The solution clearly explains who gets the deduction for the payment of real estate taxes in each case.

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a. Payment of real estate taxes is only deductible to the owner of the property. There must be a legal obligation for the ...

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