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by CareyBot

DEAR BOB: My wife and I just bought a house for her parents because they couldn't get a mortgage. They live in the house and pay us for the mortgage. We want them to get the tax deductions. But we are concerned about adding them to the title in case they end up in a nursing home or in some other way are forced to use the home's equity. Is there a way for them to get the tax deductions and avoid liability if they are sued? We are considering a contract for deed but are concerned about the tax liability on ourselves --Jeff R. DEAR JEFF: Unless the parents' names are on the home title or they have a contract to buy their principal residence (such as a contract for deed), they are not entitled to claim itemized income-tax deductions for the mortgage interest and property taxes they pay. Please...