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Son Wants Tax Deductions |
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A son renting in Manhattan cannot buy property there due to high cost. He needs a tax deduction. We own our home outright. How can we sell it to him such that we receive monthly payments, he can claim part of those payments as interest, and must he take out a mortgage through a conventional outlet, e.g. bank? |
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Once your son owns your house he can take tax deductions not only for interest on the mortgage you hold, but also for property taxes assuming he pays them. You need not go through a bank if you are going to hold a mortgage.
The whole project, though, could involve unexpected consequences, both tax-wise and otherwise. I can't go into detail without knowing more about your whole circumstances and your son's. Before you do anything, talk over the whole matter with a lawyer who specializes in estate planning. You might be creating more problems than you'd be solving -- or perhaps it is a good idea. Find out which, from a qualified professional. |
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Edith
Originally published on March 24, 2008 |
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