#1
|
|||
|
|||
Just bought a new condo.
I will have a friend of mine pay about 1/2 of the mortgage as rental payments. How are these treated, do I have to include these in my income for the year? Since this is my private residence can I exclude the payments from income?
Thanks. Nevermind...just figured it out. If I never sign a rental agreement with him, then I can treat the money I receive each month from him as a gift, non taxable to me. Now here is the question, can this transaction benefit us both? Are the gifts that he will be making to me each month a reduction of taxable income? |
#2
|
|||
|
|||
Re: Just bought a new condo.
[ QUOTE ]
I will have a friend of mine pay about 1/2 of the mortgage as rental payments. How are these treated, do I have to include these in my income for the year? Since this is my private residence can I exclude the payments from income? Thanks. Nevermind...just figured it out. If I never sign a rental agreement with him, then I can treat the money I receive each month from him as a gift, non taxable to me. Now here is the question, can this transaction benefit us both? Are the gifts that he will be making to me each month a reduction of taxable income? [/ QUOTE ] Depends on if you like Black/White or if you (and/or your CPA) like to dance in the grey. |
#3
|
|||
|
|||
Re: Just bought a new condo.
[ QUOTE ]
Depends on if you like LEGAL or if you (and/or your CPA) like to dance in the ILLEGAL . [/ QUOTE ] |
#4
|
|||
|
|||
Re: Just bought a new condo.
[ QUOTE ]
[ QUOTE ] Depends on if you like LEGAL or if you (and/or your CPA) like to dance in the ILLEGAL . [/ QUOTE ] [/ QUOTE ] very true. |
#5
|
|||
|
|||
Re: Just bought a new condo.
[ QUOTE ]
If I never sign a rental agreement with him, then I can treat the money I receive each month from him as a gift, non taxable to me. [/ QUOTE ] Is this part legal? |
#6
|
|||
|
|||
Re: Just bought a new condo.
doesn't he get taxed on the gift?
|
#7
|
|||
|
|||
Re: Just bought a new condo.
No. My dad (and his two sisters) get $10K every year from my grandfather as a tax free gift. Just a little way to reduce the tax burden once he passes.
|
#8
|
|||
|
|||
Re: Just bought a new condo.
"Are the gifts that he will be making to me each month a reduction of taxable income?
No. Also, it is unlikely that the IRS will see his rent payment to you as a gift. |
#9
|
|||
|
|||
Re: Just bought a new condo.
Not only is this income, but if you are renting out your condo, you may disqualify yourself from selling it tax free in a couple years. Talk to an accountant.
|
#10
|
|||
|
|||
Re: Just bought a new condo.
[ QUOTE ]
Not only is this income, but if you are renting out your condo, you may disqualify yourself from selling it tax free in a couple years. Talk to an accountant. [/ QUOTE ] so long as you use it for your primary residence (doesn't matter if you rent out a room) you can take the 250k exemption on CG. |
|
|