Due to family circumstances makes sense to buy house with relative to live together.
House will cost 1mil.
Retired relative currently has $4.5k per month income pre tax from SS and pentions (will have this permanently), has 500k in vaguard 401k and 500k in roth vanguard, and has 200k remaining on mortgage of a house bought for 400k that is now worth 700-800k (likely to sell moving forward).
Exact numbers not clear but guess is relative will contribute ~1/4 of new house cost. Any reason it would make sense for relative to put more down upfront? Pay as rent? How to protect from tax ramifications?
Thank you!
House will cost 1mil.
Retired relative currently has $4.5k per month income pre tax from SS and pentions (will have this permanently), has 500k in vaguard 401k and 500k in roth vanguard, and has 200k remaining on mortgage of a house bought for 400k that is now worth 700-800k (likely to sell moving forward).
Exact numbers not clear but guess is relative will contribute ~1/4 of new house cost. Any reason it would make sense for relative to put more down upfront? Pay as rent? How to protect from tax ramifications?
Thank you!
Comment