Tenants-in-common, gifting part of a house

State: Illinois

Basic premise: My parents are having trouble with their mortgage and after briefly consulting a lawyer, he recommended having me enter a tenants-in-common agreement with my parents (so they can hold onto the equity that they've already paid for). My question(s) are as follows:

Can my parents "gift" part of the house to me as part of the tenants-in-common process or do I have to buy it from them?

i.e. can we have the paperwork drawn up with my name added as 50% owner in a TIC without requiring me to give up the benefits of a first-time home purchase?

Thanks in advance for your help!

[HomeGuru]

[quote]Originally posted by jyinyang
[b]State: Illinois

Basic premise: My parents are having trouble with their mortgage and after briefly consulting a lawyer, he recommended having me enter a tenants-in-common agreement with my parents (so they can hold onto the equity that they've already paid for). My question(s) are as follows:

Can my parents "gift" part of the house to me as part of the tenants-in-common process or do I have to buy it from them?

**A: they can gift following the IRS guidelines.
*******

i.e. can we have the paperwork drawn up with my name added as 50% owner in a TIC without requiring me to give up the benefits of a first-time home purchase?

Thanks in advance for your help!

**A: no.