High School Graduation is in a few months. Do you have a child who’s getting ready to head off to any of our great Ogden area colleges or even out of states colleges? Once the excitement of acceptance has worn off, I’m sure you have been pricing dorms or apartments close to the colleges. Not only has housing gone up, but now tuition is, too. OUCH!
How about purchasing a condo for your college student to live in the two to four years or more of college life? You save on paying rental on a dorm room, and if there are several bedrooms, you may be able to help offset the cost of living in a college town by renting out the other rooms. Many parents have made a tidy sum purchasing a condo for their kid(s). You can sell the condo after graduation or continue to collect income renting to other students.
There are tax advantages to owning a condo during your child/ren’s college careers. Since your child/ren will have to pay rent either for a dorm room or a different apartment, according to SmartMoney.com, “You can give your kid up to $13,000 annually without any adverse federal tax consequences. If you’re married, you and your spouse can together give up to $26,000. Your child can use that money to write you monthly rent checks. Just make sure he or she actually sends the checks and make sure they say they are for rent. Also, it’s best if you open up a separate checking account to handle the rental income and expenses. Taking these simple steps will help keep the IRS off your back if you ever get audited. “
There are advantages to purchasing a “kidde condo”, but you should talk to your tax person to give you the details of those advantages. If you would like to see what properties may work out for you, please contact us today!!