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Posted by SMF on January 19, 2007, 1:20 am
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3 adult siblings own a summer property together. They all
put funds in an account under one of their names to cover
costs. The property taxes are paid out of this account.
Who gets to deduct the property taxes paid. 1/3 to each?
The total to the one who is the account owner? All are
liable , all put the same funds in the account, but only one
is on the account. Thanks
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Posted by Paul Thomas, CPA on January 19, 2007, 8:25 pm
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> 3 adult siblings own a summer property together. They all
> put funds in an account under one of their names to cover
> costs. The property taxes are paid out of this account.
> Who gets to deduct the property taxes paid. 1/3 to each?
> The total to the one who is the account owner? All are
> liable , all put the same funds in the account, but only one
> is on the account. Thanks
All three should be able to take a deduction for their share
of the property taxes.
Proving it, if it comes up, will be more problematic, but
not impossible.
--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net
<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by kastnna on January 19, 2007, 8:25 pm
Please log in for more thread options SMF wrote:
> 3 adult siblings own a summer property together. They all
> put funds in an account under one of their names to cover
> costs. The property taxes are paid out of this account.
> Who gets to deduct the property taxes paid. 1/3 to each?
> The total to the one who is the account owner? All are
> liable , all put the same funds in the account, but only one
> is on the account. Thanks
It depends on the underlying arrangements. It sounds like
the account owner only gets to make the deduction, but I
could be mistaken.
When you say "all are liable" what do you mean? Who will
hold you liable, the government, your siblings, a trust
arrangement? It doesn't sound like there are any LLC, FLP,
or trust documents that outline responsibilities of each
partner.
You should definitely consult an estate planner regarding
your current arrangement. You all are in a position to
create trouble (especially upon the death of one of the
siblings). Lawsuits, family arguments, divorces,
remarriages, and a dozen other situations could threaten the
property by keeping it in your names. The costs of the
potential problems far outweigh the costs of seeking
professional advice.
<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Harlan Lunsford on January 19, 2007, 8:44 pm
Please log in for more thread options SMF wrote:
> 3 adult siblings own a summer property together. They all
> put funds in an account under one of their names to cover
> costs. The property taxes are paid out of this account.
> Who gets to deduct the property taxes paid. 1/3 to each?
> The total to the one who is the account owner? All are
> liable , all put the same funds in the account, but only one
> is on the account. Thanks
Well, since they all three own the property, it must be so
titled, i.e. in all their names. therefore they split the
deduction. Doesn't matter where funds come from.
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Seth Breidbart on January 22, 2007, 3:59 am
Please log in for more thread options >> 3 adult siblings own a summer property together. They all
>> put funds in an account under one of their names to cover
>> costs. The property taxes are paid out of this account.
>> Who gets to deduct the property taxes paid. 1/3 to each?
>> The total to the one who is the account owner? All are
>> liable , all put the same funds in the account, but only one
>> is on the account. Thanks
> Well, since they all three own the property, it must be so
> titled, i.e. in all their names. therefore they split the
> deduction. Doesn't matter where funds come from.
Do people really get to deduct taxes they didn't pay?
The fact that the taxes were paid _through_ a single account
shouldn't matter, but the fact that their _source_ was each
of the three people does.
If one of the owners has a bad year so the others each pay
half the taxes, I think they deduct what they paid. (Or, it
could be considered that they gifted the third with his
share of the taxes, which he paid from the gifts; but I
think that would need to be done explicitly.)
Seth
<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>
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