I can’t imagine the returns you would have to generate. 22% federal tax, plus 8% state tax, plus 10% penalty.

Now, this would obviously be negatively cash flowing since you would need to pay taxes and insurance.

Is taxes going to be higher today or higher in the future? 

Joint tax return?  

@Palak Patel copied from our website, so use what's useful for you:_________________________________________________________________________Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.Required InfoWe require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):Copy of acceptable state picture IDRecent YTD paystubRecent W-2Recent Bank Statement, all pages, no info blacked outRecent tax return if self-employedApplicants are often slow about turning this information in, asking us why we need it and then taking several days to submit.

I don't have any specifics but as someone who is into tech, accounting/finance, and a consultant to grow businesses.

Since the loan is still in your name, you can deduct the interest you’re paying to the lenderon your tax return... 

You could structure the deal as an installment sale or a lease option so the property owner doesn't see a large capital gain tax payment for the sale.And good on you for helping out!

If all goes well, my monthly payments could drop about $60 from a tax reassessment in about six months.

The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.