Parents Home

What is the name of your state? Michigan
Sirs:
My mother lives in her home but is unable to pay the expenses. She receives only SS. Her 5 children are providing the necessary support of about $13,000 per year How would you suggest we structure the ownership of the property to receive the best possible tax advantages for the children?
Thanks
Richard

ReaderRC said:

What is the name of your state? Michigan
Sirs:
My mother lives in her home but is unable to pay the expenses. She receives only SS. Her 5 children are providing the necessary support of about $13,000 per year How would you suggest we structure the ownership of the property to receive the best possible tax advantages for the children?
Thanks
Richard

Click to expand...

Well...in all reality it would probably be best for your mother to retain ownership of the home. If you all inherit shares of the home you will receive a stepped up basis to fair market value when your mother passes. That would reduce your capital gains tax dramatically. If she gifts you the home, then your basis is her basis, which means that you will pay much higher capital gains taxes when the house is eventually sold.

There really isn't anything else that would give the 5 of you any real tax break/advantage, because there are 5 of you.