Another Strange One

[Gretel]

Had a client contact me with the following question.


Son occupies the house as personal residence, Father does not occupy the house. Not a duplex, it is a Single Family Residence.

Would Son either gift or sell % to Father?

Is it possible that Father could rent out a portion of the house and not affect the Son's taxable income?

Thoughts,

Sandy

Wow, very creative.

I think son will need to gift or sell to Father, who then needs to participate in taxes and upkeep. Then he can do with his part as he pleases.

Just putting the name on the title to avoid tax consequences won't fly. A wolf is still a wolf even if he finds a very fancy costume.

[S T]

Had a client contact me with the following question.

I was thinking about adding my name to our son's deed. The Deed would read (Son's Name and Father's Name. . The existing loan is and will remain in son's name only.
Now, if I (father) rent out a room in the house to someone else and they pay me that rent I would declare it as income on my taxes, right??

Would there be any obligation on Son for rent income, etc., because he is an owner even if he did not rent out the room??

Son occupies the house as personal residence, Father does not occupy the house. Not a duplex, it is a Single Family Residence.

Would Son either gift or sell % to Father?

Is it possible that Father could rent out a portion of the house and not affect the Son's taxable income?

Thoughts,

Sandy