Purchasing Homes with your young children - Pros/Cons

[Chris Fuhry]

Wondering if it makes sense in any way to have my sons name on my next house/deal with me? He's only 5 and I really don't know if there is any benefit to having him on an LLC with me, or if it makes any beneficial sense to do so. Maybe saving on future transfers/taxes? Figured I'd throw that out to the group and see if anyone does this, or knows if there is any benefit? Thank you!

[Basit Siddiqi]

Two reasons you may not want to do that - 

1) The income / allocated to your son won't be added to your DTI ratio
2) Your son will be required to file a return going forward which may add a cost of $300 on the low end(for someone with a rental owned via Tenants in common

There may be some benefits if there is the ability to shift some income to him at a lower bracket. However, you also then have to concern yourself with the 'kiddie tax'.

Best of luck.