I already have a house which is my primary residence. State of Arkansas. I want to buy a second house as an investment and let my brother, his wife and kids live there as long as they need rent free.
The second house will be in my name. Whenever my brother buys his own house (3-5 years), he will move out I’ll resell this second house, or rent it out to someone, I’ll see.
are there any tax repercussions for letting my brother live for free? Should I be charging a symbolic amount to avoid extra taxes?
since this second house is not my primary residence, am I going to encounter higher taxes?
can I claim the second house to be my primary residence too? Can I have two primary residences?
state of Arkansasmean that you live in Arkansas, that this hypothetical second house is in Arkansas, or both?