Posted by Bill Bronchick, Esq. on May 20, 2010 at 18:01:20:
Preferrably, he’d deed the properties over to you and be done with it. If he does not feel comfortable doing that, then a contract-for-deed, will be the equivalent of a “sale”, which would allow you to deduct the interest and taxes. The fact that someone else gets a 1099 is irrelevant, unless he tries to take the deduction (in which case, he’d be denied).
Taking over properties from associate - Posted by Jack
Posted by Jack on May 19, 2010 at 16:00:04:
I have an associate who recently bought a tri-plex. He now wants to get rid of them and is willing to let me take over the payments. Of course the title and loan will still be under his name since I can’t qualify for a new loan. How do I work it so that I can claim the interest deduction, expenses, taxes, etc… Even though legally he will still be the owner and getting the 1099 from the bank each year? Thank you.