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Real Estate fg>
Eileen M. Day realtor bs.ss
SELL HOME TO CHILDREN
ANDSTAY
There is nothing in the law that says you have to move into a new residence after selling your home, even if you take the $125,000 over age 55 exclusion. (Private IRS Letter Ruling 8502027) This allows you to create a plan that can bring tax and financial planning benefits to everyone in the family.
You can sell the home to your children. The children don’t need to put up cash and they need not qualify for a mortage. The sale can be either an installment plan or a private annuity. In either case you’ll be receiving regular payments for a period of years or for your life. Thus, you’ve turned your home equity into cash without moving. You’ve also removed the home from your estate.
The children could charge you fair market rent. The rent payments would be returned to you as mortgage payments. By charging you rent, die children are able to depreciate the home and take other rental deductions.
If there is anything we can do to help you in the field of real estate, please drop in at EILEEN M. DAY, Realtor, The Clopton House, Washington, Va. 22747. Phone: 6753400. We’re here to help.
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