Ultimately, we hope that Jim will buy the house back after about five years. Bill does not want any profit. He does expect Jim to pay all the expenses during this period.
Here are my questions. Can Jim avoid settlement charges when he gets the house back? Can they avoid transfer taxes when Bill gives the house back to Jim? Can Jim get a tax deduction for the taxes paid during his period of ownership? Thanks in advance.
WHAT HARRY SAYS: A tip of my many hats to Bill! Some settlement charges will have to be paid. There will be charges for getting the title changed, a new mortgage and the like. There is no transfer tax on transactions between siblings. Jim can get a tax deduction for the taxes if he pays them. A rental agreement can be worked out to cover those expenses during the period of Bill's ownership. Here's hoping that Jim has learned to live within his means.
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