Legal Question in Real Estate Law in Illinois
If I buy a rental property for someone else under my name, what would be the legal implications on my part. The property is going to be paid in full at the time of purchase and this person is going to be responsible for all maintenance, property tax etc. Do I have to report something to the IRS like property income every year? Thanks
2 Answers from Attorneys
My recommendation is to meet with an experienced attorney and accountant (get referrals) to discuss and draw up the terms of the relationship and consider the tax consequences. You are talking about having money to invest, but being shy on spending a reasonable fee to protect that investment. It will turn into a "pay me know or pay me later" situation. Mistakes will either cost you in liabilities or in significant professional fees later.
I agree with Mr. Repay wholeheartedly. You need to define the relationship in writing. There are too many considerations to delve into them in this kind of forum.
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