Hi all,
My wife and I are helping her sister to buy a condo so she'll have a place to live when she gets married, which is coming right up. However, she has no established credit, so the loan will go under our names only. We'll get the mortgage on the condo as an investment properly, and she'll pay us rent which will basically cover the mortgage payments (we're putting in the down payment). We're in the process of working out who will get what percentage ownership between us, etc., and that's a question for another day.
My main question is whether or not my sister-in-law should have her name put on the title of the property? Are there any tax advantages for us if her name is on the title from day 1? Does this facilitate one of those 1031 exchanges any easier, or possible at all? Can we somehow avoid or reduce the impact of capital gains taxes made on the future sale of the property?
Any information is greatly appreciated!
Andy in Newark
