Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: gsr One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: House for Neice - anything taxable ? Date: 2/6/2000 3:29 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
In December, 1998 my wife, her sister and I purchased a house for our neice(the sister's daughter) and her husband. We did this because they could not qualify for a loan.

This was a $50,000 house. Downpayment and Closing costs were paid by us and were about $15,000, leaving a loan of about $37,000.

We are letting them make the mortgage payments (routed through my wife's sister to make sure they are timely).
They are also paying an extra $100 per month to retire the 'no-interest loan' of the $15,000 downpayment/closing costs.

Some time, 5-10 years from now, when they can qualify for a loan themselves we will sell them the house for the residual value of the two loans.

No one is planning to take any mortgage interest deductions.
We do not want to treat this as rental property with depreciation and other stuff.

TAX QUESTION: Is there any need to report any of this on our tax returns ?
(Mainly worried about the extra $100/month to pay off the downpayment 'loan').

Thanks
-Greg
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement