Potential Tax implications for buying house for parents

[Zach Geddes]

First thank you for your time.

I live in CA and my parents are moving to MN where the rest of my family lives. Due to health issues my parents are now on disability and a fixed income and want to move for cheaper cost of living. We have chosen a house that a family friend owns and wants to sell off market.

They won’t qualify for a mortgage so my wife and I are going to buy a house for them ($90k house) and just have them pay us rent to cover the mortgage, ins and taxes.

Emotions aside and potential issues aside with that I’m just curious if anyone knows the potential tax implications are? Good, bad, indifferent... Thank you