My father is in a nursing home and we are considering renting his home to help with the nursing home fees.
Would I need an accountant - I'll be the person in charge of this. Never done it before. How does the tax work? End of year?
I'm joint (enduring power of) attorney.
You could, but that would be tax evasion and could entail serious and expensive consequences.Also consider an equity release loan on your fathers home to fun the care, if you didn't have the spare cash to fund the care costs, as these bills are sizeable. You could pay for care utilize the tax credits and your farther can repay you from the equity release loan.
He is.Is your Father on Fair deal, if so it renting could have impacts there as well
It's very poorly written. It seems the person will keep 100%> But it doesn't clarify if 'keep' means it will or will not be in the FD assessment.I think this was the case, but not anymore according to this;
what if the dad gifts the equity loan release (instead of repays) then it should be legal ?You could, but that would be tax evasion and could entail serious and expensive consequences.
Why would someone clocking up big bills in a nursing home gift borrowed money to their children?what if the dad gifts the equity loan release (instead of repays) then it should be legal ?
so the children can pay the nursing home costs on behalf of the dad and claim the tax relief, the family end up paying 60% of the costs instead of 100%Why would someone clocking up big bills in a nursing home gift borrowed money to their children?
It looks and sounds like artificial tax avoidance, which the law forbids.so the children can pay the nursing home costs on behalf of the dad and claim the tax relief, the family end up paying 60% of the costs instead of 100%
Is it legal and not tax evasion once gifted ?
ok thanks for clarifyingIt looks and sounds like artificial tax avoidance, which the law forbids.
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