How to buy multiple homes

[lawdummy]

What is the name of your state? texas

I currently own a home with an ongoing mortgage. I need to buy homes for my parents and also for my parents-in-law. These houses are going to be less than 50 miles from my primary home.

How should i set these other properties up to maximize tax benefits?

A non lawyer friend of mine suggested setting up an FLP or LLC and putting the houses in thoses entities, as the less than 50 mile rule would make them investment properties in the eyes of mortgage companies?

thanks

 

[LdiJ]

What is the name of your state? texas

I currently own a home with an ongoing mortgage. I need to buy homes for my parents and also for my parents-in-law. These houses are going to be less than 50 miles from my primary home.

How should i set these other properties up to maximize tax benefits?

A non lawyer friend of mine suggested setting up an FLP or LLC and putting the houses in thoses entities, as the less than 50 mile rule would make them investment properties in the eyes of mortgage companies?

thanks

I can't see any particular benefit in putting them into an FLP or LLC. How are things going to be set up financially? Who will actually be paying the mortgage payments?

 

[lawdummy]

I will be paying the mortgages on all the properties.


BTW, neither set of parents work and my wife and I support them financially. They will qualify for social security in about 14 months.

 

[seniorjudge]

What is the name of your state? texas

I currently own a home with an ongoing mortgage. I need to buy homes for my parents and also for my parents-in-law. These houses are going to be less than 50 miles from my primary home.

How should i set these other properties up to maximize tax benefits?

A non lawyer friend of mine suggested setting up an FLP or LLC and putting the houses in thoses entities, as the less than 50 mile rule would make them investment properties in the eyes of mortgage companies?

thanks

Q: A non lawyer friend of mine suggested setting up an FLP or LLC and putting the houses in thoses entities, as the less than 50 mile rule would make them investment properties in the eyes of mortgage companies?

A: This has nothing to do with taxes, but it is a good question to ask potential lenders.

 

[LdiJ]

I will be paying the mortgages on all the properties.


BTW, neither set of parents work and my wife and I support them financially. They will qualify for social security in about 14 months.

Then I really see no advantage at all in putting the properties in an LLC. You will be able to deduct the mortgage interest on your schedule A.

Yes, the mortgage companies will consider them "investment properties" for the sake of issuing the mortgage, but that doesn't make them investment properties for the sake of taxes.