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Buying a property for child while in college and tax implications

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Replies to: Buying a property for child while in college and tax implications

  • partyof5partyof5 2549 replies125 discussionsRegistered User Posts: 2,674 Senior Member
    Update: I found a condo and a verbal offer has been made as the condo isn’t listed yet. My only concern are the condo’s bylaws. I’m not sure I will be allowed to rent it out.
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  • scubasuescubasue 544 replies40 discussionsRegistered User Posts: 584 Member
    I have not read all of the posts, so forgive me if I am repeating something that has already been explained. In the first few posts I did read, there is a lot of misinformation.

    I learned a lot about this last year when I purchased a home for my parents.

    Fannie Mae has a provision whereby, per IRS regulations, you can buy a home for your college student or your low income parents with primary home underwriting. You aren't expected to collect or report any rental income on that home.You don't have to live in the home for 14 days as you would with a second home.

    We weren't renting the house out, so I assume, that since it would be considered a primary home for all intents and purposes, that if you rent half the home you would have to report that rental income, but you would also be able to deduct half the expenses.
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  • Nrdsb4Nrdsb4 16658 replies156 discussionsRegistered User Posts: 16,814 Senior Member
    I learned a lot about this last year when I purchased a home for my parents.

    What a wonderful thing to do.
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  • scubasuescubasue 544 replies40 discussionsRegistered User Posts: 584 Member
    ^Drop in the bucket compared to what a pain in the @$! it must have been raising me (though I never did anything wrong outside the house).

    Also..it sounds better than it really is....the home is in the midwest....awesome home, dirt cheap....a LOT less money every year than the tuition and room and board we recently finished paying. ;)
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  • partyof5partyof5 2549 replies125 discussionsRegistered User Posts: 2,674 Senior Member
    Update I am tentatively scheduled to close next Friday, yea!!!
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  • sherpasherpa 4724 replies93 discussionsRegistered User Posts: 4,817 Senior Member
    Congratulations!
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