So this isn't something that's on the immediate horizon for me, but I've been thinking about the future when my parents can no longer work and will have to rely solely on SS. (Unfortunately they have zero savings and have always been terrible with money.)
So what I'm thinking is I'd like to buy a house, under my own name, for them to live in. It would not be my primary residence. (Would probably be my first house purchase, too.)
So I'm wondering what the best way to go about this would be, in order that:
1. I don't create any tax events for my parents, such as gift or property tax.
2. They're able to live in the house rent-free, without having to declare any income.
What is the best course of action for how to achieve this? Ideally I'm hoping that they have zero financial burden or negative tax implications such that their benefits get limited by living in the house rent-free.
Would there be any reason for them to have to pay a small amount of rent in order to do this?
I plan to talk to a tax professional of course, but just figured I'd throw this up in case people have any experience with this.
So what I'm thinking is I'd like to buy a house, under my own name, for them to live in. It would not be my primary residence. (Would probably be my first house purchase, too.)
So I'm wondering what the best way to go about this would be, in order that:
1. I don't create any tax events for my parents, such as gift or property tax.
2. They're able to live in the house rent-free, without having to declare any income.
What is the best course of action for how to achieve this? Ideally I'm hoping that they have zero financial burden or negative tax implications such that their benefits get limited by living in the house rent-free.
Would there be any reason for them to have to pay a small amount of rent in order to do this?
I plan to talk to a tax professional of course, but just figured I'd throw this up in case people have any experience with this.