First off, My apologies for not replying to your message sooner. I just saw your reply tonight as it went into my spam folder (which I obviously do not check often). I really appreciate your comments and the comments of the others in explaining my options.
The bottom line of what I am trying to do is pass the home onto my son and do it in a way that will minimize taxes for both of us.
One of the things that I was told recently was that, in the state of Michigan, if you live in the rental home for 2 years out of 5 years it can be considered a personal residence and no additional taxes would be due. Hopefully this is true. If so, I would add my son to the property deed (along with me) and he would live in the house for 2 or more years and not have to pay additional taxes. After that time, I would remove myself from the deed and it would be his home solely. Is this thought process correct?.
