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I have recently purchased a new condo, and we have a contract to purchase one for Mom in the same complex.

We are going to buy Mom's condo before selling her current house. The goal is to get her moved out, fix up a few things, and put it on the market. Once we sell her current house, we will pay off the mortgage on her new condo. We currently have the funds to fully pay off the mortgage on her current house and put 20% down on the condo.


Is that "we" or "she" with sufficient funds? I ask because if she has the money in the bank I'm having trouble understanding why she can't get a loan on her own. I suggest you post this to the Buying/Selling a Home board. There are some mortgage pros there who could give you better insight than you're likely to get here about the lending side of things.

From a purely tax perspective:

1. What kind of Federal pension does she have that is tax-free?

2. Have you checked to see if the offset provisions of SS will reduce her SS benefit?

3. I'd advise putting your name on the title to her condo. If you inherit it you inherit it with a basis stepped up to its FMV at that time. If you're 50/50 owners you get the stepped-up basis on only the half you inherit.

4. The IRA avenue sounds promising if you do need to temporarily boost her monthly income. She's in the "golden age" of IRA rules where she can take as little or as much as she wants. (I believe I saw in the linked post that she was 60 at the time.) I doubt seriously that the IRA custodian will be any trouble, but if they are just move the account to a custodian which understands whose money it is.

Phil
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