Putting my name on parents' home title. What are the pros and cons?

Question

I want to get on my parents' home title so I can deduct property tax.

I was wondering if there are any hidden disadvantages to this that I should be aware of?

Answer 1

You can't deduct the property tax unless you are the one who's paying it. Is that what you're planning to do?

You do realize that you'd pay more in property tax than you would possibly be able to save by writing off that tax as a deduction, don't you?

Answer 2

First of all, you don't decide to whether to put your name on your parent's house.  They decide if they want your name on the house.

There can be a huge drawback in years to come, provided the tax laws stay the same.  If you inherit the house from them when they die, then you get the property at the current market price and should you sell, you would owe little or no taxes.

If your name is on the house before that, then when they die, you get the house at the value of the house when they bought it.  Simply put, if they bought the house at $50,000 and it is now worth $300,000, you will own taxes on $250,000.