matt_sandiego
Junior Member
"Buying" a house, but F-I-L is paying for it all - Legal/Ethical/Tax implications
What is the name of your state (only U.S. law)?
I live in California, but the house is in Illinois.
First off, thanks to anyone who can offer advice and chooses to do so - I greatly appreciate it!
My father-in-law owns a subdivision with two other partners. Their only remaining asset is a single family home which is currently for sale. My FIL wants my wife to "buy" the house in her name, however he plans on paying for it entirely. He will put about 40% down, and pay the mortgage and property taxes every month.
I have several questions about this:
- Is it legal for my wife to buy a house with none of her own money? Can he actually write the check for down payment and cover the mortgage every week?
- What are the tax implications of this? When we get sent the property tax bill at the end of the year, is it illegal for him to pay it? How would we handle the interest write off when tax time comes?
- I believe he is doing it in her name because of a conflict of interest or something similar with him buying a house from a LLC that he is a partner of. If the LLC was sued, could the search for assets lead to "our" house?
What I would like to do is just take on the mortgage ourselves, and owe him the 40% down payment - but I believe he is doing this transaction for his own investment so I don't think he would agree to this.
I appreciate your responses!
Thanks!!!
What is the name of your state (only U.S. law)?
I live in California, but the house is in Illinois.
First off, thanks to anyone who can offer advice and chooses to do so - I greatly appreciate it!
My father-in-law owns a subdivision with two other partners. Their only remaining asset is a single family home which is currently for sale. My FIL wants my wife to "buy" the house in her name, however he plans on paying for it entirely. He will put about 40% down, and pay the mortgage and property taxes every month.
I have several questions about this:
- Is it legal for my wife to buy a house with none of her own money? Can he actually write the check for down payment and cover the mortgage every week?
- What are the tax implications of this? When we get sent the property tax bill at the end of the year, is it illegal for him to pay it? How would we handle the interest write off when tax time comes?
- I believe he is doing it in her name because of a conflict of interest or something similar with him buying a house from a LLC that he is a partner of. If the LLC was sued, could the search for assets lead to "our" house?
What I would like to do is just take on the mortgage ourselves, and owe him the 40% down payment - but I believe he is doing this transaction for his own investment so I don't think he would agree to this.
I appreciate your responses!
Thanks!!!
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