Question about house in my name that isn't mine

[rentals1968]

After reading this forum I think I may have a big problem. I am seriously considering filing Chapter 7 within the next several months. Approx. 3 years ago my elderly mother relocated to our area. At the time she decided she didn't want the house in her name. She said it would be mine someday anyway & thought it would be easier in the long run. I took out the mortgage on the house she lives in and the deed is in my name only. She paid all the closing costs, down payment, has made every mortgage payment with a check made out to me which I then deposit and use to pay the mortgage. On paper the house is mine. In reality this is my mom's house paid for with money. She is getting ready to put it up for sale. At settlement the check for the profit will be made out to me as the owner. Am I going to have to claim the profit from her house as money I have? I'm sure she will deposit it into her account that has my name as a co owner. Ug- this doesn't seem good.

[justbroke]

No, in reality and legally, the home is yours. You will probably have to claim the money as your income. Especially since you made all the payments. It will look like she rented the home from you, and nothing more.

You have serious issues and potential tax consequences since this is not your primary residence. You should be speaking with an accountant and a bankruptcy attorney on the specifics.