Expert: Dick Dennis - 6/29/2007

Question
QUESTION: Hi,
My parents are now retired and can't afford to pay the mortgage on their own. The mortgage and title deed is under my father and my two brothers which used to lived w/them and now out of the house and living on their own. My parents have ask me and my husband if we want to move in with them and just continue the payment. My brothers never really paid the mortgage with my dad. I guessed that time he needed to show some income at the bank. Please advise if this is wise and what process are we suppose to take.
Thank you in advance.
Ennyl

ANSWER: It doesn't seem wise to me, Ennyl. If you pay the mortgage payments you will not be able to deduct the interest from your income tax because you are not on title. If you are going to make their payments you may as well do it right where you are now. You don't have to live with them to make payments. I presume you are living in a rental.

What you need to do is to contact a tax expert (CPA, tax attorney) and have him/her advise what is the best way to do this maneuver you are asking about. One thing for sure, is that your two brothers would have to be removed from the title since they never made payments anyway.

I do wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: Sorry! forgot to mention that we own a home not renting and we are thinking of either selling or renting it out, if we decide to move. I live in Canada and I'm not sure that I have claim the interest from my income tax. Maybe, I was not aware of it... I just found out now too that my parents have a 1 month arrears on the mortgage. I'm very confused now. Can't get them in to my house as we don't have enough room for them. Please advise and thank you.  

Answer
OH CANADA! That's a different story. I am not familiar with Canadian tax laws or ownership for that matter. I strongly suggest you consult with a real estate attorney or as I said before, a tax expert to make sure whatever you do to help your parents doesn't backfire onto you. I do wish you well.