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Old 02-01-2012, 10:46 AM
 
106,675 posts, read 108,856,202 times
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The state is about 15k so thats what you were thinking of lol
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Old 02-01-2012, 11:13 AM
 
2,691 posts, read 4,331,224 times
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Quote:
Originally Posted by Kefir King View Post
You had best formalize the arrangement otherwise you are going to find yourself in a sticky mess when it comes to tax time. In any case it's going to be sticky.

Why not have him buy you out and keep the whole thing clean.

Telling the IRS that you are renting your co-op to your father and claiming income from the transaction and deducting expenses, ESPECIALLY if he's the guarantor, is going to get you audited...perhaps both of you. It's all too fuzzy.

If you really want to keep the situation, then make sure you formalize it in writing, perhaps with a tax accountant's help.
Well, I'm not making money from it, he's just living there and pays me the equivalent amount in expenses (eg cable is $100 month so he gives me $100/month etc), but I see your point. Buying me out isn't really on the table either- I want to retain ownership of the property. I'll just talk to my accountant and ask how I need to handle the situation.
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Old 02-01-2012, 12:08 PM
 
106,675 posts, read 108,856,202 times
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You can have a big issue to with depreciation. If your collecting rent even at no profit you will be charged back for depreciation if you sell even if you never took it. Thats a major concern here.
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Old 02-03-2012, 03:03 AM
 
106,675 posts, read 108,856,202 times
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i guess he got scared away after hearing the pitfalls of that plan......
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Old 02-03-2012, 07:01 AM
 
Location: Manhattan
25,368 posts, read 37,084,455 times
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Quote:
Originally Posted by mathjak107 View Post
i guess he got scared away after hearing the pitfalls of that plan......
And there are pitfalls galore.
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Old 02-03-2012, 08:54 AM
 
2,691 posts, read 4,331,224 times
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Quote:
Originally Posted by mathjak107 View Post
i guess he got scared away after hearing the pitfalls of that plan......
Are you talking about me? I'm female, by the way and there is no "pitfall in the plan". The only plan is to have my dad live in the co-op. I was just trying to understand the tax implications of the situation since I am not familiar with the rental rules as they pertain to immediate family. I've already stated that I'm speaking with my tax accountant about it. You people on this forum are ridiculous sometimes.
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Old 02-03-2012, 04:06 PM
 
106,675 posts, read 108,856,202 times
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if you dont want to hear the answers dont bother to ask then...are we missing something here?
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Old 02-03-2012, 04:56 PM
 
2,691 posts, read 4,331,224 times
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Quote:
Originally Posted by mathjak107 View Post
if you dont want to hear the answers dont bother to ask then...are we missing something here?
Yes you are...the point is that I asked the question, was given feedback, LISTENED to the feedback and based on what was said, understood that I need to have this formalized with the help of a professional. I even stated (twice, once in my first note asking the question, and the second time after quoting Kefir) that I was going to talk to my tax accountant. I'm sure he will present everything clearly, including the points brought up here by you and Kefir, so that I can act appropriately. If my accountant tells me there could be a problem if I don't do xyz, then I will do xyz. I've been using the same firm for years.

So, if I have:
1) Already expressed that I understand the situation can be more complicated than I originally assumed and 2) said that I will be meeting with a professional to make sure the situation is properly formalized to avoid any problems, why the need for the commentary about there being a "pitfall" for some grand "plan" that I have? Good grief! No grand scheme here people, just my dad living in my co-op.
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Old 02-04-2012, 07:30 AM
 
Location: Manhattan
25,368 posts, read 37,084,455 times
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Why are you getting snotty with the two people who are trying to help you?
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Old 02-05-2012, 12:05 PM
 
2,691 posts, read 4,331,224 times
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Quote:
Originally Posted by Kefir King View Post
Why are you getting snotty with the two people who are trying to help you?
Why were the two people trying to help, giving antagonistic commentary after I said I'd be speaking to a licensed professional?

ANYWAY this back and forth has been beaten to death....

Off topic but timely: GO GIANTS!!!!
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