Need advice...how to help parents

[bumbershoot]

because that is what happens when you don't pay your taxes properly,the IRS comes for you,and you end up with nothing,or less.
Trust me, I've seen this scenario.....

Well, you can trust my MIL, and she has over 50K to pay back b/c of taxes, and she pays about $50 month to the IRS. So no, they don't always take all of your money.

It's the first place I would start, having parents there to give permission to talk to the IRS and get this part figured out.

 

[crisi]

I own a home I bought for my brother in law who passed away last weekend.

You cannot write it off. And, unless you are charging enough to make money, you can't treat it as investment property. You can choose to help (we did), but don't expect the government to give you a break for helping.

I bought a very small house two years ago. The mortgage was $1000 a month, and there was another $500 a month in taxes, insurance and utilities. My brother in law paid me $750. I will sell the house for less than I bought it for, and pay commission to the realtor. It was worthwhile for us - but I'll be out $20k at least on the house deal - which we figured we would be when we started - and which would be nice in our kids college funds or our retirement. We knew that the house was a short term thing with my brother in law - and I also knew that I didn't really want him living with me (nor did he want to live with me), unless your parents are very elderly, you may be stuck paying out a lot of money for a lot of years if you choose this path.

 

[semo233]

OP - First, I think you need to take a trip to see your parents and your sister. This trip should have several goals; to tell your sister that you appreciate what she has done, that you know how much of a toll it has been and that you are there to help figure it all out....together. Once your parents are on board for full disclosure, you can get started. Figuring it out may involve visiting an attourney, accountant, social security, social services, etc. Make all the appointments ahead of time so that you can do them all while you are there. If that is impossible, make an appointment for a conference call that you can be on.

Once you know their exact situation and available options, decision can then be made together.

Being across the country and saying, "Well, you are on your own if you don't want to come live with me" leaves kicking them out on your sister's plate!! That's not fair to any of them. If your parents will not like the options or decisions that you will have to make, you will need a united front with your sister and your presence will help.

Just my two cents.

 

[Judique]

My parents live on the financial edge...they have had some really good years where their dreams have come true and some really bad years.

It has been bad a long time now. They have a house but it is mortgaged to the hilt and my sister has been paying all the bills (and living there) for a long time. But she's finally reached the breaking point and has decided that she can't afford the big house so she is letting the bank foreclose. They are moving out this month. We all thought my parents were going to get an apartment and be okay, but we just found out the IRS is taking most of what little they are earning.

I've offered to have my parents move in with us (we live on the opposite side of the country) but they are not on board. I feel it's not fair to my sister to have to keep supporting my parents and I can tell she is getting resentful.

I have had people at work telling me that I can buy my parents a house and write off almost everything...anyone have experience with that?

I'm at a loss and don't know what to do. We aren't rich...we save for retirement and 3 college educations and that takes most of our extra money...it'll be tough but we are willing.

All the best to you with whatever you decide to do to help. Your parents are lucky to have you and your sister.

I can certainly understand that they may not want to move cross country. Your offer was generous to open your home to them, but they probably made the best decision for all to stay where they are.

Your sister may be able to tell you what you can do to help. Are your parents older and unable to figure things out? Perhaps after you get some insight from the CPA you will be able to understand how you can help.

Good luck!