Tax issues with a rental home

4 Replies

I own half interest in a home in Florida with an X girlfriend.She is incarcerated

and will be for the next four years.She has no income or assets and wants to retain the home even though I am paying for all the repairs. The home has equity in the neighborhood of

35k total.I had planned on giving my interest in this home to her until my CPA informed me that if I dispose of the property I will roughly have a 9K tax liability I am on the quit claim deed but am not on the mortgage.I want to dispose of this property for financial reasons.I have paid the Real estate fees to sell the home.I am looking for ideas on this situation??

Jim,

How about rent with a lease option on a (4) yr. contract. Figure a selling price. Take a down payment as "option consideration" and build in monthly money into the rent to be used toward a down payment when it comes due in (4) yrs. Negotiate a max. amount for the renter to be responsible for repairs. They pay utilities. You pay taxes and hold the title till the sale in (4) years, after your X is free to sign documents. 

I failed to mention that she is uncooperative except for the fact that she wants to keep the house.Legally As half owner could I execute this without her being on board? I like the idea but I could not consumate the deal in four years without her consent? any thoughts?

Check with your real estate attorney

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.