I’ve got a parent who wants to buy a new home. They’ll be paying cash and putting it in my name, then declaring bankruptcy shortly after. They are also currently in the midst of a lawsuit (hence the bankruptcy).
I am not the most knowledgeable about technicalities, so I’m hesitant about ways this could potentially hurt me.. I’ve tried my hardest to be very responsible in my life & have fantastic credit, no criminal history, etc.
I am also a business owner. (Sole prop.) I’m also curious how this could potentially affect my tax situation..
Any advice would be helpful.
Location: middle Tennessee
Comments
This is a move clearly designed to shield their assets and is a crime. Anyone at the mortgage company with half a brain could figure it out. If you agree to this, you are part of the crime.
>I’m also curious how this could potentially affect my tax situation..
Taxes will be the least of your problems when you are in jail. This plan is fraud, and pretty obvious fraud at that.
You need to have exactly zero financial dealings with your parents right now. They are trying to take advantage of your youth and naivete to make you the fall guy for their scams. Just say “no”.
Don’t do this. It’s fraud, more than one kind of fraud. This will ruin everything you have worked hard to achieve and tried hard to build. Not might ruin, or could ruin, but will ruin.
If you feel it’s not right, don’t do it!