Housing Round-Robin (while minimizing taxes)

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Confused
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Housing Round-Robin (while minimizing taxes)

Post by Confused » Mon Oct 29, 2012 10:11 am

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wilked
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Re: Housing Round-Robin (while minimizing taxes)

Post by wilked » Mon Oct 29, 2012 11:41 am

Sounds like a cluster-####, and if it were me I would go nowhere near it, keep renting exactly where I was and let the others negotiate their way through that mess. Without knowing any more, it seems certain someone will feel shortchanged and squabbles will ensue

rogermexico
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Re: Housing Round-Robin (while minimizing taxes)

Post by rogermexico » Mon Oct 29, 2012 12:09 pm

It's pretty clear from the rents and mortgage amounts listed that owners of houses A and B would show losses on Schedule E, so you wouldn't be paying taxes on rents. Only if (Rent - prop tax - insurance - mortgage - repairs) were positive would anyone be paying taxes.
That said, I think owners of A should either just sell the place or rent it on the open market.

Confused
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Re: Housing Round-Robin (while minimizing taxes)

Post by Confused » Mon Oct 29, 2012 12:43 pm

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auntie
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Re: Housing Round-Robin (while minimizing taxes)

Post by auntie » Mon Oct 29, 2012 1:17 pm

So many things could go wrong. Almost certainly something would go wrong. It could ruin the family bonds, which would be very bad. I wouldn't touch it.
High risk does not equal high reward. It equals high risk of no reward.

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