RobertB4444
Expert Alumni

Get your taxes done using TurboTax

In order to do the thing that is best for your daughter you would buy this for cash as a second home and then leave it to her in your will.  You will get a deduction for paying the taxes on it every year - of course, that means you'll pay taxes every year - and then when you pass the house will transfer to her debt free at an increased basis so she won't owe any taxes on it if she sells it.  

 

The best for you would be to either co-sign the loan or buy it and then sell it to her at a monthly rate that she can afford to pay.

 

But as @Bsch4477 points out there are a lot of moving parts here that you don't know and can't tell us here.  What are the odds that your daughter will stay in the house?  Can she afford even the taxes?  What if she gets a job offer somewhere?

 

There are lots of options here.  It would be a good idea to sit down with your daughter as well as a financial advisor.

 

@jarvfam01 

 

 

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