Can my parents live in a house that I own and take advantage of homeowner and senior citizen property tax exemptions (via triple net lease agreement)?

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Can my parents live in a house that I own and take advantage of homeowner and senior citizen property tax exemptions (via triple net lease agreement)?

My parents are 66 years old and have no income. I own a house and I want them to live in it. We have pretty high property taxes and I would like to try and take advantage of of both homeowner and senior citizen property tax exemptions on this house as long as my parents live there. I heard it is possible if we sign a lease which makes them responsible for paying the taxes. Is this true? Are there any caveats in doing so?

Asked on March 3, 2012 under Real Estate Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Unfortunately, under the laws of all states, for you to get a reduced property tax rate on your home, a written lease (short or long term) with your parents who are 66 years old will not afford you any tax benefits.

The only way to get some tax benefits is for you to sell them the home at a rate below the current fair market value. The problem with that is it could be deemed an improper transfer.

I recommend that you consult further with a real estate attorney on the subject.


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