If You’re a Live-In Caregiver, These Are the Tax Breaks You’re Likely Missing Out On By Realtor.com

Multigenerational living is at an all-time high.

In fact, the most recent Profile of Home Buyers and Sellers report by the National Association of Realtors® found that 17% of homes purchased over the past year were multigenerational households.

If you’re part of one and serve as a live-in caregiver, you’ll be pleased to learn there are tax breaks you can claim to help cover everyday living expenses and home improvements. 

“From what I’m seeing with clients, multigenerational living is becoming much more common as families balance housing costs with caregiving responsibilities,” says Kyle Paxton, CPA and real estate director at James Moore & Co. in Tallahassee, FL.

This trend often changes how families think about financial planning.

“There can be opportunities to structure expenses and caregiving support in a way that aligns with existing tax rules,” adds Paxton.

The intersection of multigenerational living and homeownership

While multigenerational homeownership is one of the most cost-effective housing solutions, it presents issues of tax complexity that most homeowners get wrong. 

When you offer affordable housing for an elderly parent or relative, you assume expenses that they would otherwise bear themselves. 

“This represents a substantial financial cost—property taxes won’t be reduced due to the presence of a parent, and insurance, utilities, and other costs will inevitably increase,” says Cody Schuiteboer, CEO of Best Interest Financial in Detroit.

That’s where tax codes can step in and provide generous benefits.

“I have assisted homeowners that realized they can claim tax benefits of $4,000 to $8,000 annually due to the care they provide to members of their household,” Schuiteboer explains.

This tax recovery is major. It fundamentally shifts the paradigm on multigenerational living from financially overwhelming to truly manageable.

"Call Eli Torres at (832) 430-2107, for your home buying and selling needs."

Source: www.realtor.com