house jointly owned after marriage

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Subject Author Date house jointly owned after marriage removeps-groups@yahoo.com 04-29-2009  Re: house jointly owned after marriage Paul Thomas, CPA 04-30-2009  Re: house jointly owned after marriage removeps-groups@yahoo.com 04-30-2009  Re: house jointly owned after marriage Bill Brown 05-01-2009
Posted by removeps-groups@yahoo.com on April 29, 2009, 6:58 pm Please log in for more thread options If the house is jointly owned after divorce and each former spouse (A and B) makes half of the mortgage interest and property tax payments, but only one of them (A) lives in the house, can they both deduct the mortgage interest and property tax that they pay on their own tax returns? The rule with mortgage interest is that you can only deduct mortgage interest on your primary or second home, but the home is not really the primary or second home of the former spouse who no longer lives there (B), so I'm confused with whether the payments are deductible. Publication 504 suggests that it is, because when B makes all the payments, half of the mortgage interest is deductible on their return, and the the other half is alimony. And what about the section 121 exclusion? The former spouse B who moves out may lose out on the exclusion if the house is sold after more than 3 years. However, IRC 121(d)(3)(B) suggests that the former spouse who moves out (B) but still jointly owns the home may get the section 121 exclusion anyway because A lives there. Is my reading right? -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by Paul Thomas, CPA on April 30, 2009, 8:19 am Please log in for more thread options > If the house is jointly owned after divorce and each former spouse (A > and B) makes half of the mortgage interest and property tax payments, > but only one of them (A) lives in the house, can they both deduct the > mortgage interest and property tax that they pay on their own tax > returns? The rule with mortgage interest is that you can only deduct > mortgage interest on your primary or second home, but the home is not > really the primary or second home of the former spouse who no longer > lives there (B), so I'm confused with whether the payments are > deductible. Publication 504 suggests that it is, because when B makes > all the payments, half of the mortgage interest is deductible on their > return, and the the other half is alimony. > > And what about the section 121 exclusion? The former spouse B who > moves out may lose out on the exclusion if the house is sold after > more than 3 years. However, IRC 121(d)(3)(B) suggests that the former > spouse who moves out (B) but still jointly owns the home may get the > section 121 exclusion anyway because A lives there. Is my reading > right? Yes. -- Paul Thomas, CPA Watkinsville, Georgia -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by removeps-groups@yahoo.com on April 30, 2009, 11:16 am Please log in for more thread options wrote: > Yes. To both questions? -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by Bill Brown on May 1, 2009, 3:14 pm Please log in for more thread options On Apr 30, 11:16 am, "removeps-gro...@yahoo.com" <removeps- gro...@yahoo.com> wrote: > wrote: > > > Yes. > > To both questions? > Yes. -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Similar Threads Posted Re: Marriage License March 12, 2007, 4:54 am deathbed marriage June 28, 2009, 9:56 pm Social Security Survivors Benefits - Minimum Length of Marriage to Qualify? 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