Discussion:BUYING HOUSE WITH FAMILY MEMBERS
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| Revision as of 22:49, 20 February 2009 CrowJD (Talk | contribs) (Question: "Buyi) ← Previous diff |
Revision as of 23:03, 20 February 2009 Dingodile (Talk | contribs) (You're a CPA, yo) Next diff → |
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| Answer: Duh, No! This is illegal. I'd sell blood before I threw in a family member as an inducement. On the flip side, no, you can't buy people. Go to Kuwait or somewhere if you want to do that.}} | Answer: Duh, No! This is illegal. I'd sell blood before I threw in a family member as an inducement. On the flip side, no, you can't buy people. Go to Kuwait or somewhere if you want to do that.}} | ||
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| + | {{ForumReplyPost|UserID=Dingodile|Date=20 February 2009|Text=You're a CPA, you should be savvy enough to get this agreement in paper. I'd strongly advise it.}} | ||
Revision as of 23:03, 20 February 2009
Discussion Forum Index --> Tax Questions --> BUYING HOUSE WITH FAMILY MEMBERS
| 20 February 2009 | |
| It may be a complicated situation but interesting and need wisdom from you.
I am living in a house with my father-in-law and sister-in-law's family. It's 1.2mm house and the facts are as follows: My family - live on the 1st floor, has zero equity Father - live on the 2nd floor, put in 300K for down payment Sister - live in the basement, put in 200K for down payment on the paper, the owner of the house is my father-in-law and we took out $700,000 mortgage. But our family decided that each family has 1/3 ownership of the house, which translates as follows: my family - responsible $400,000 mortgage Father - responsible $100,000 mortgage (400k-300k) Sister - responsible $200,000 mortgage (400k-200k) so when we receive bill for mortgage payment, each family pays by the ratio. If mortgage payment is 7k, my family pays 4k, father pays 1k, sister pays 2k. we have been operating this way and I have been tracking principal and interest for each family using loan manager software. When we receive 1098, each family claims their mortgage interest amount on Schedule A based on the schedule I have been tracking of, which agrees with the number on 1098. My question is 'Is it ok to do this as long as I keep all the payment records?' If this doesn't sound right, what is the best way to handle this situation in terms of tax? Thank you for reading this situation and welcom any opinions or ideas. Thanks. | |
| 20 February 2009 | |
| Riley2 and Kevinh5,
Yes. I am a CPA but work in a different industry. That's why I need some help on this issue. I do not know how IRS looks at this situation... Thanks. | |
| 20 February 2009 | |
| Have you considered forming a legal partnership? If the house is in your father-in-law's name, he can sell it without informing you and keep all the proceeds. This doesn't sound like a good arrangement to me. | |
| 20 February 2009 | |
| Question: "Buying House with Family Members"
Answer: Duh, No! This is illegal. I'd sell blood before I threw in a family member as an inducement. On the flip side, no, you can't buy people. Go to Kuwait or somewhere if you want to do that. | |
| 20 February 2009 | |
| You're a CPA, you should be savvy enough to get this agreement in paper. I'd strongly advise it. | |
