In fact, if your parents claim the standard deduction instead of itemizing, they get no income tax benefit at all from home ownership.
Strategy: Consider buying your parents’ home. Then, lease it back to them at the going rate. That way, they can tap into the built-up home equity without moving away.
And you’re able to reap the tax rewards of renting the house.
For starters, the sale can put some much-needed cash into your parents’ pockets. And little or no income tax will be due on the sale, thanks to the giant home-sale exclusion. The tax law allows an individual to exclude tax on th...(register to read more)
- When a worker suddenly wants a promotion
- How responsible is a parent company for an action filed against a subsidiary company?
- Selling real estate? Speed up tax payoff for installment sale
- Be careful with doctor certifications: Union contract may trump FMLA rules
- When to take dividends in lieu of salary as a business owner