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The lease and utilities are all in DD's name, but the roommates don't pay her, they write checks for 1/3 the rent, etc, directly to the landlord & utilities. So every month DD sends the landlord 3 checks, the electric company 3 checks, etc.

The issue is that DS will not be able to afford 1/3 of the rent, and will need to be paying a lesser amount. It seems to me that if he gets the rent, then he can charge the roommates more than 1/3 each, and he ends up paying less than 1/3 and something he can afford. Otherwise, he won't have enough money to pay an even split on the rent that would be due.

I suppose I could give him back money at the end of each year because it would be under the gift tax limits.

Would it make more sense for us to buy the house with him and us on the deed and mortgage, and then he collects the rent as the owner, and pays the entire mortgage? In that case, how do we structure the deal?
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