New Tax Rules Benefit Family Members and Joint Owners of Residential Rental Property

  • July 3, 1983
  • • Written by: Charles P. Edmonds Rudolph Lindbeck

Spring/Summer 1983, Vol 8, No 1

Abstract: In an effort to open another avenue for creative financing, Congress passed the Black Lung Benefits Revenue Act of 1981, which changed the tax consequences of renting property to family members and/or joint owners. The change allows for parents, other relatives and joint owners to engage in rental and shared equity agreements without sacrificing tax benefits. The illustrations presented in the article reveal that the impact of this new Act can result in a significant improvement in an investor’s annual cash flows and rates of return.