Tax filing with a shared Mortgage

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Tax filing with a shared Mortgage

by LEGNADEEE@YAHOO-DOT-COM.NO-SPAM.INVALID (LEGNADEE) on 2005-07-17 08:01:17

I am planning on purchasing a piece of property with my
boyfriend. During Tax season will we both be able to claim
the deduction?

Please advise,

Thank you,
Denise

Tax filing with a shared Mortgage

by HERB SMITH on 2005-07-19 19:09:50

legnadee wrote:


The answer depends on what this "piece of property" consitst
of. A house, undeveloped land, rental property? That will
determine what deductions you and your boyfriend might
qualify for.

In any case, you can only deduct what you have paid from
your funds. For example, if you are each 50% owners, and you
pay 50% of the real property tax payment, then that is what
YOU can deduct. This all assumes that you have enough
itemized deductions to file Schedule A. If not, you get no
tax benefit (but HE cannot deduct your portion.

Tax filing with a shared Mortgage

by HARLAN LUNSFORD on 2005-07-19 19:09:51

legnadee wrote:


Sorry to tell you this, but there IS no deduction for
purchasing a piece of property.

If the property is a house to be your home, and you finance
it with a mortgage, then there are possible tax deductions
for home mortgage interest.

ChEAr$,
Harlan Lunsford, EA n LA

Tax filing with a shared Mortgage

by PHIL MARTI on 2005-07-19 19:09:52

"legnadee" wrote:


Assuming you both are liable for the payments and make the
payments, yes. The Schedule A instructions tell you what
additional information is required on your return since only
one of you will be on the 1098 record.

You may want to sit down and figure out whether it's to your
advantage to have only one of you making the mortgage
payments (and itemizing deductions) while the other pays
nondeductible things like maintenance, utilities, food, etc.
(and uses the standard deduction). This advice from our
moderator's upcoming "Living in Sin for Fun and Profit."

--
Phil Marti
Clarksburg, MD

Tax filing with a shared Mortgage

by NAN, EA IN LA on 2005-07-19 19:09:53

Basic rule - you can deduct interest and property taxes if
1) you are legally required to pay them, and 2) you pay
them. If both of you are listed on the title and the
mortgage, you are obligated to pay.

If you make the payments........well, partners of any kind
often make gifts to each other out of which the payment is
made...........Or agree that they'll make uneven payments
(your income is double his so you pay more... ) If
questioned, you need to be able to show that you each paid
on the mortgage in whatever proportion you claimed.

Nan, EA in LA

Tax filing with a shared Mortgage

by PAUL A THOMAS on 2005-07-19 19:09:54

"legnadee" wrote

Not quite. You both can't claim the same expense, but you
may split it in some fashion, IF, you had both paid on the
mortgage. You should split it in the percentage that you
both paid on it. Same for property tax that was paid from
escrow or at closing when you bought it.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

Tax filing with a shared Mortgage

by FRANK S. DUKE, JR. on 2005-07-19 19:09:54

legnadee at legnadeee@yahoo-dot-com.no-spam.invalid wrote:


To take a deduction for the interest paid on a mortgage, you
have to be a legal party to the mortgage, obligated to pay
it and you have to actually pay it yourself. If each of you
meet that criteria, you should be able to deduct the
mortgage payments you make. This assumes that the mortgage
is deductible in the first place, like on a primary
residence or vacation home but not on a third home.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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