Thank you for the detailed response @DanielV01 .
How about this scenario:
They live in the house, we pay the mortgage, we claim them as dependents.
- Will we still get the advantage on the second house mortgage interest and property tax? (Both houses together are $750,000)
- The new house is old and needs some repair and doesn't have washer, dryer and fridge. Can we get claim any of these on the tax?
- After two years, we will remodel the house, sell it and will earn $100K profit. Should we pay tax on this $100K? We're on 24% tax bracket.
