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Old 03-18-2018, 05:22 PM
 
Location: San Francisco Bay Area
4,157 posts, read 2,164,081 times
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Quote:
Originally Posted by little pink View Post
There is no scheme nor illegal activities. Both of my sons qualify for 124 free credit hours from the VA , its called tuition and fee exemption for children of a disabled veteran in Indiana due to the fact that my ex-husband is from Indiana and disabled. I have a cheap condo under contract in Indy. My son will live there for 12 months and become a resident , get a job , drivers license etc. In one year he will qualify for 4 years free tuition at Iupui . In 5 years we sell the condo . My son doesn't party , he should be fine. My question was when we sell this condo will it be considered a rental property ? The condo will be in my name, my son can either slowly pay me or just live there and pay the utilities and small condo fee if he doesn't want to purchase from me.
Legality aside, there is a scheme in place. Your clear intention is to obtain four years of free university education for your son funded by the taxpayers of Indiana.
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Old 03-19-2018, 08:18 AM
 
379 posts, read 180,227 times
Reputation: 741
But wait , the VA understands that most military service families move around . I'm guessing they offer this , assuming the family will move back to their home state after retirement. The person from The VA that I spoke with asked why we haven't gotten on this already for our sons? My son will possibly land a job in Indiana after graduation and pay income taxes in Indiana. This truly is a blessing from the VA .
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Old 03-19-2018, 08:28 AM
 
1,519 posts, read 567,747 times
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Quote:
Originally Posted by SFBayBoomer View Post
Legality aside, there is a scheme in place. Your clear intention is to obtain four years of free university education for your son funded by the taxpayers of Indiana.
You obviously do not understand what VA benefits are.
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Old 03-19-2018, 08:51 PM
 
Location: San Francisco Bay Area
4,157 posts, read 2,164,081 times
Reputation: 8091
Quote:
Originally Posted by RoamingTX View Post
You obviously do not understand what VA benefits are.
My post cleary addressed INSTATE COLLEGE RESIDENCY, not VA benefits.

The OP's "scheme" is to obtain FREE education based on INSTATE RESIDENCY. That education is funded by taxpayers, not the VA.

The OP said in the first post: "the condo will be in my name but my son will be living there for a few years. We are doing this to get instate college residency. "
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Old 04-03-2018, 05:54 PM
 
379 posts, read 180,227 times
Reputation: 741
DVA: Tuition and Fee Exemption

I'm closing on my condo in Indianapolis on Friday. I have the paperwork that states each of my sons get 124 credited hours paid by the VA . The woman at the VA asked why we haven't acted on this yet . The VA knows that we did not retire from the military in Indiana . My son is getting a job in Indy as soon as he moves in , he will be paying taxes, so this is not a scheme.
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Old 04-03-2018, 06:30 PM
 
1,519 posts, read 567,747 times
Reputation: 2948
Quote:
Originally Posted by SFBayBoomer View Post
My post cleary addressed INSTATE COLLEGE RESIDENCY, not VA benefits.

The OP's "scheme" is to obtain FREE education based on INSTATE RESIDENCY. That education is funded by taxpayers, not the VA.

The OP said in the first post: "the condo will be in my name but my son will be living there for a few years. We are doing this to get instate college residency. "
The free education is the VA benefit for instate students. Use all the bold red you want, but establishing residency by buying a condo is a common path.
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Old 04-06-2018, 11:16 PM
 
16,504 posts, read 17,550,486 times
Reputation: 23586
Quote:
Originally Posted by NYCresident2014 View Post
Unfortunately you're overstating the tax benefits. Expenses on rentals are only deductible to the extent of the rental income. The best you'll do is net zero impact on your tax return. Google "passive activity loss".

Also, since you can depreciate the property and deduct other passive expenses, you won't have net positive passive income under a normal circumstance anyway so you won't have a spare $12k/yr to pay the son. Most rental properties are deep in the red for tax purposes and due to depreciation, it will be a decade or longer before they are profitable enough for there to be a need to try to reduce taxable passive income.

I have a rental property that throws off a $600/mo cash profit but loses almost $900/mo for tax purposes, and I don't do any tax gaming. The extra $300/mo of losses doesn't offset my ordinary income but instead gets carried forward to future years; it'll eventually flip once inflation causes the rent to increase by enough to turn a profit.

Easier just to buy the house and pay the expenses and let the kid live there. Worry about the rental income after he moves out. Life is too short to bother with all that.

If the 12k comes from the rental income itís deductible to the owner.
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