Can Heclaim This As His Primary Residence?
I am wholesaling an unusual deal. Mom died and made son trustee of her estate.
Mom's will allows husband to live in property until he dies or wishes to move.
Husband pays taxes and maintenance.
Property is worth ~$400k. Son is willing to sell it for ~240k to help pay estate taxes.
My buyer asked me if he takes a mortgage on property and pays P&I but gets no rental compensation, while waiting for father to vacate property one way or the other, can he claim this as his primary residence for tax purposes?
He would be renting an apartment in the meantime.
Any opinions would be welcome
Thanks,
John
He can claim anything he wants to......
However, the IRS may not agree with his claim.
Is he waiting for dad to die to move in or would something else trigger that???
What are the fathers intentions???
if he is not living there its not his primary is it
Quote:
On 2004-06-30 23:56, rainforrester wrote:
I am wholesaling an unusual deal. Mom died and made son trustee of her estate.
Mom's will allows husband to live in property until he dies or wishes to move.
Husband pays taxes and maintenance.
Property is worth ~$400k. Son is willing to sell it for ~240k to help pay estate taxes.
My buyer asked me if he takes a mortgage on property and pays P&I but gets no rental compensation, while waiting for father to vacate property one way or the other, can he claim this as his primary residence for tax purposes?
He would be renting an apartment in the meantime.
Any opinions would be welcome
Thanks,
John
*Sounds like Dad has a Life Estate. The buyer cannot claim this property as his personal residence until her actually moves in with Dad.