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Posted by Annie on April 13, 2008, 10:48 am
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Hi,
My brother and I jointly own a condo that our mother is living in,
rent-free. I was told I can't take my share of the property tax off of our
taxes because it is not my primary residence. Is this true?
Thank you!!
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Posted by Mark Bole on April 13, 2008, 11:09 am
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Annie wrote:
> Hi,
>
> My brother and I jointly own a condo that our mother is living in,
> rent-free. I was told I can't take my share of the property tax off of our
> taxes because it is not my primary residence. Is this true?
>
> Thank you!!
Nope. If you pay the property tax for real property you own anywhere,
it can be deducted either against rental income or on Schedule A.
Mortgage interest is limited to first and second home only.
You may have a not-for-profit rental activity, and you are making a gift
of the rent to your mother.
-Mark Bole
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Annie on April 13, 2008, 4:03 pm
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> Annie wrote:
>> Hi,
>>
>> My brother and I jointly own a condo that our mother is living in,
>> rent-free. I was told I can't take my share of the property tax off of
>> our taxes because it is not my primary residence. Is this true?
>>
>> Thank you!!
>
> Nope. If you pay the property tax for real property you own anywhere, it
> can be deducted either against rental income or on Schedule A. Mortgage
> interest is limited to first and second home only.
>
> You may have a not-for-profit rental activity, and you are making a gift
> of the rent to your mother.
>
> -Mark Bole
Many thanks for your help! It's appreciated! :)
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by removeps-groups@yahoo.com on April 14, 2008, 7:31 pm
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> > You may have a not-for-profit rental activity, and you are making a gift
> > of the rent to your mother.
If you have a not-for-profit rental, then expenses are limited to the
amount of income, right? And what about depreciation? Seems you have
to take depreciation, but then can't deduct it because your rental
income is zero.
Anyway, is there a requirement that the home has to be treated as a
rental? Couldn't it just be an investment home owned by the brother
and sister, in which case depreciation and the complications of
Schedule E don't arise.
> Many thanks for your help! It's appreciated! :)
You may need to file a partnership return 1065 to split the property
tax between you and your brother.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Mark Bole on April 14, 2008, 9:04 pm
Please log in for more thread options removeps-groups@yahoo.com wrote:
>
>>> You may have a not-for-profit rental activity, and you are making a gift
>>> of the rent to your mother.
>
> If you have a not-for-profit rental, then expenses are limited to the
> amount of income, right? And what about depreciation? Seems you have
> to take depreciation, but then can't deduct it because your rental
> income is zero.
Well, the imputed rent would not be zero. There would be rent, and then
a gift of the rent.
> Anyway, is there a requirement that the home has to be treated as a
> rental? Couldn't it just be an investment home owned by the brother
> and sister, in which case depreciation and the complications of
> Schedule E don't arise.
I thought about that after I posted. Without taking the time to
research the pubs for things I read once and only half-remembered, I
think you are right. Better yet, it could just be a second home that a
close relative is living in (might not apply if it was a non-related
person).
In fact, if the parent has little income and more than half the support
(including free rent) is provided by either or both children, there
might be a dependency exemption and even head of household -- sorry for
the sloppy reply, it is April 14th after all. That is the power of
"may" and "might"! ;-)
> You may need to file a partnership return 1065 to split the property
> tax between you and your brother.
Now, that one I'm pretty sure is not the case, no matter what. Expense
and income splitting on a passive activity rental property is allowed on
Schedule E.
-Mark Bole
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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