presented by
Buying a house for Mother In Law
Need some advice. So currently my in-laws are getting ready to sell their house and go their separate ways, while staying legally married. He will most likely need to file bankruptcy here in the near future (credit cards) while she is on Social Security Disability so her ability to support herself is very limited. My question is if me and my wife buy a small house, or trailer under our names and allow her to "rent" it from us for much below market, what are the legal/tax implications of this. From my understanding we could not claim it as a rental property for taxes and it would be designated as "personal use" by the IRS. Is there any thing else I need to be aware of from a legal side of things? Any advice would be greatly appreciated. Thank you.