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Old 06-05-2014, 12:23 PM
 
Location: NC
720 posts, read 1,486,087 times
Reputation: 1072

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Trusting on the usually sound feedback of this forum. Not looking for opinions on my situation, as the story is long and involved. DH and I have bought a place in NC and plan to be full time residents.DH has already gotten his driver's license and car registered there.House in CT is up for sale.
Son has moved home, doesn't want to move with us,(divorced,his 2 children are here) works, has bad credit.
We could purchase a small mobile home for him. Because of his poor credit, the park owner will OK his living there if the home and the lot rental agreement are in our names.
So, how would this affect us tax wise? It wouldn't be income producing, and we won't be living there. We want to help him, but don't want to get screwed financially. Son will be paying lot rent money to us. We did a similar set up 14 years ago with our eldest daughter, but of course we were residents. Any ideas? The lot rent is $410/month. The home will be paid for, property taxes around $1000. We really don't want any CT financial entanglements.
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Old 06-05-2014, 01:04 PM
 
Location: Miraflores
786 posts, read 895,355 times
Reputation: 1531
I would look at the state requirements for giving up residency as they are different for each state.
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Old 06-05-2014, 09:58 PM
 
Location: Albuquerque, NM
1,428 posts, read 2,572,909 times
Reputation: 2536
Is there a chance that a big up-front payment toward the lot rent could convince the landlord to let the lot be in your son's name? I'm talking, like, a year or two's worth of lot rent. Enough to make it really enticing.
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Old 06-05-2014, 11:52 PM
 
Location: Copenhagen, Denmark
10,522 posts, read 8,773,196 times
Reputation: 12218
If you have no in-state CT income, then, generally all you have to do is pay the property tax to CT and other property related taxes if there are any. You don't have to be a resident of any state in the US to own residential property, as far as I know. Correct me if i am wrong.
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Old 06-06-2014, 06:17 AM
 
Location: NC
720 posts, read 1,486,087 times
Reputation: 1072
We tried the upfront rental payment offer and he said he won't do that.
When we held the daughter's condo in our name, in CT, when we did our taxes the CPA counted the mortgage payments as rental income, then we deducted the condo fees and a per cent of property depreciation. We were eventually able to transfer it into her name. Although we'd be paying cash for the trailer, he wants that in our name also, even though he's not the trailer owner/seller. Ah well.
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Old 06-06-2014, 10:28 AM
 
Location: Florida
4,370 posts, read 3,706,500 times
Reputation: 4111
Quote:
Originally Posted by poodlecamper View Post
We tried the upfront rental payment offer and he said he won't do that.
When we held the daughter's condo in our name, in CT, when we did our taxes the CPA counted the mortgage payments as rental income, then we deducted the condo fees and a per cent of property depreciation. We were eventually able to transfer it into her name. Although we'd be paying cash for the trailer, he wants that in our name also, even though he's not the trailer owner/seller. Ah well.
Then you were treating this (Daughter) as an investment property. The IRS would want you to be able to show that you got market rental income. Your question seemed to me to say you were not treating your sons deal as an investment. Just worried about resident state for income taxes. The ownership of the CT property should not be a problem for NC residency status. You could have an estate problem as this would have to be done in both states.
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