What is the best way to buy your kid a home, and limit your tax liabilities

I own my home, i want to buy a house for my kid. before, I have pulled out an equity loan at 6.% and purchased a house for my kid. i registered it and have them paying me a 8.5% mortgage to me. they have out grew this house and i want to buy another one for them. what is the best way to limit my tax liabilities, and still purchase a home for them. they would still pay me back for it. like they do now. the previous way seemed a bit expensive. and my taxes seemed messed up.

Answer:

To be quite honest, you will definitely need to contact an accountant and look at your specific numbers in detail. I suspect that the tax implications will be much more significant than the interest rate. And those tax implications really depend on your specific situation, things such as your income level, the price of the properties, whether or not you have write-offs, and so on...


Views: 1679        Posted on: Apr 10 2012        Tags: Tax