OWN YOUR KID'S COLLEGE HOME ONE PARENT'S STORY: $4,000 FOR 3 YEARS OF HOUSING KATHY FETTKE & DONNA BEHRENS
Tax rules are also an important consideration. If the parent is the primary owner, it might be possible to
designate the home as a second family home and deduct 100% of the mortgage interest and property taxes.
You can also buy the home as an investment property and “rent” it back to your child. Tax deductions are even
better on investment property, as repairs, taxes, insurance and most expenses can be deducted. (This is not
tax advice! Always speak with your CPA or tax advisor for your specific situation.)
Another option: a parent may be able to give a child up to $14,000 a year to pay that rent. Two parents can
give a total of $28,000. As always, there are always rules on top of rules, and they change, so check with your
tax accountant.
Other benefits of ow ning your child’s college digs include fixed housing expenses and housing stability. The
child won’t have to go through the summer moveout and the rush to find a new place in the fall, and there will
be no “surprises” about how much the next rental will cost especially if the loan is on a fixed rate.
Hopefully, the ownership scenario will also provide a more productive environment for, let’s say, doing
something like... homework. But with 4 roommates in the house, you shouldn't count on that. :)
Kathy Fettke and Donna Behrens
Author Kathy Fettke is the founder and coCEO of Real Wealth Network. You can reach
her at [email protected].
CoAuthor Donna Behrens is podcast producer and writer for Real Wealth Network. You
can reach her at [email protected].
Some of the information in this article came from a piece by hgtv.com: http://www.hgtv.com/design/realestate/campus
cribsbuyingrealestatepropertyforyourcollegestuden