The gift tax is the u.s. government's way of preventing people from avoiding income taxes by giving away all of their money.
[header] How to pay off someone else's mortgage [title] Familiarize yourself with gift tax law. [step] Any method of paying for someone else's mortgage would qualify as a gift. In the united states, if you give someone a certain amount of money without receiving a service in return, you become liable for the gift tax.