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Selling Half to Son |
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Thank goodness for this opportunity to ask a question!
it is really about both tax and selling. We would like to sell half a condo we presently own as a second home. The other owner would be our son, college grad/secure employment/single. He would live in the place and pay half of everything (mortgage, asoc fees, tax, etc.) Two questions:
Who/how to best write it up, and would it be a quitclaim, grant deed, written agreement, partnership or what?
Would we be able to both (our son and us) have half of the tax deductions associated since we would have both names on title?. We are doing this because if he were to pay the entire monthly expense and downpayment, buying outright at this point would be a little steep although perhaps in a year or two he would buy the whole thing. We realize he gets the benefit of living there tho we pay half, but that is ok with us for the time being.
Is this doable in some way, shape or form? Thank you so much! We have been thinking on this for days. |
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Once your son is half-owner of the property, he is entitled to take as a tax deduction any property taxes and mortgage interest he actually pays himself.
It is fairly simple to make him a co-owner; you just sign a deed naming all of the new owners and have it entered in the public records. If he is actually paying you money, you may have capital gains tax considerations; if it is a gift, you may have to file a gift tax return but there probably wouldn't be any actual gift tax due.
In any event, a lawyer can guide you through the fairly simple process. I'd suggest one who specializes in either real estate or estate planning.
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Edith
Originally published on January 17, 2008 |
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