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Just looking for a little direction here...hoping I'm not venturing into illegal territory and I know the regulars here have sound advice.

Thinking about buying a condo to live in eventually (to be owned by my living trust, I am trustee) and I believe the current owner would be quite happy to rent it back from me at a near-market rate post-closing until she finds a new place and once I can get a jump on selling my current home. Problem is, I do not want to show any more income for 2014 as it would torpedo my healthcare planning via the ACA. I am already expecting 2014 income to be right up under a level that I do not want to cross.

Can we legally, buyer & seller, agree to a price in principal (let's pretend market price is $600k) and then adjust it downward by 6 months of rent (assume $3k per) while I then let her live there rent free through year end ($582k)? Is this running afoul of the authorities? Or is it just within the bounds of a lowish bid for the unit, accepted by the owner combined with a separate agreement between myself & current owner wrt $0 rent. I have every reason to believe she'd be a good tenant.

Or is there a way that I can set up some vehicle to own the condo which files its own taxes, receives rent but pays taxes & HOA fees, and keeps any rental income away from least until 2105, perhaps longer. I am clueless with rules of residential RE taxation & arms length transactions.

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