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Author
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Topic: TAX QUESTION
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macthizzle
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Member # 3492
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posted
 
 
I purchased a home with my uncle July of last year. We are 50/50 owners of this house. My question is do I have to wait for some type of paper before I can file now? I have my work w2 and school 1098t already. Do I have to claim the property in my taxes? Will he get way more money if he claims the property? Thanks for your help im new to this.
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"FUCK U PAY ME"
Posts: 992 | From: REDWOOD CITY | Registered: Oct 2003
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Gnari-Garage
CAFords OG
Member # 3164
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posted
One of my rental property is with a partner (50/50), Yes you have to wait or call the mortgage company. You can write off the interest paid, in your case you just write off 50 percent of the interest. It makes a big difference.
Also if this is a home you or him are living in, than you just write off the interest, if its an investment property, than you have to claim the rental as an income (in your case 50 percent).
If you helped him buy a house and he is paying everything than I'd just let him write off the interest.
Hope this helped!
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Posts: 4017 | From: 916-sacramento | Registered: Aug 2003
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1996 GT
I'm Joe Yates
Member # 4992
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posted
You'll get a w9 for interest paid, but you have to coordinate that money because if you double dip on writing it off then you could get audited. Usually the w9 comes in your February statement but if it doesn't ask the bank for a copy after 1-31
Posts: 9308 | Registered: Oct 2004
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venomous99
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Member # 1917
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posted
quote:
Originally posted by macthizzle:
Will he get way more money if he claims the property? Thanks for your help im new to this.
not an easy quesiton to answer as there are far too many factors that determine how much taxes are to be owed or refunded.
best for you to keep it simple and treat it as 50/50 if thats your arrangement w/ your uncle. should be able to deduct the property tax as well as the mortgage interest paid. this assumes you have 50/50 partnership proven by a title and loan in both your names.
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Posts: 4811 | From: dc | Registered: Oct 2002
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macthizzle
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Member # 3492
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posted
quote:
not an easy quesiton to answer as there are far too many factors that determine how much taxes are to be owed or refunded.
best for you to keep it simple and treat it as 50/50 if thats your arrangement w/ your uncle. should be able to deduct the property tax as well as the mortgage interest paid. this assumes you have 50/50 partnership proven by a title and loan in both your names.
We do have 50/50 parnership and the loan is under both of our names. Can I have him file for all this year and i will claim the house next year. Is that possible?
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"FUCK U PAY ME"
Posts: 992 | From: REDWOOD CITY | Registered: Oct 2003
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Beasty5.0
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Member # 2935
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posted
quote:
Originally posted by macthizzle:
[QUOTE]We do have 50/50 parnership and the loan is under both of our names. Can I have him file for all this year and i will claim the house next year. Is that possible?
Just so you know in general when dealing with the issue as to who is allowed to claim mortgage interest a few factors need to be considered in order to make a correct determination. That being said, in your case since both of you are on the loan, this typically means your both on title as well. This allows you to establish an equitable ownership, which is required in order to claim the interest.
Another important factor is who makes the payments. If both of you split the mortgage payment, then that also shows that you're taking responsibility for 50% of your share. Therefore, if you only make 50% of the mortgage payment, then you're allowed to claim 50% of the interest. However, if your uncle makes the entire mortgage payment, then you're not allowed to claim any interest. The same thought process is applied for property taxes.
In regards to your question as to you claiming it one year and him another. Under tax law, you can't claim interest for something that you didn't pay for, therefore, unless you paid the mortgage payment the entire year, you won't be allowed to claim his interest nor will be able to claim yours.
Finally, the amount of interest paid for the year comes on a form 1098 Mortgage Interest Statement, which you don't have to wait in order to file as you can typically get this information from your bank over the phone.
EDIT: If this is a rental property then you can deduct other costs. Some of them for example are homeowners insurance, repairs (careful with this as some repairs are more like improvements in which case you will have capitalize them and get a depreciation benefit over the life of the asset), utilities (if Landlord agrees to pay for them)
[ 2014-01-22, 11:52 AM: Message edited by: Beasty5.0 ]
Posts: 1055 | From: San Francisco | Registered: Jun 2003
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macthizzle
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Member # 3492
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posted
quote:
Just so you know in general when dealing with the issue as to who is allowed to claim mortgage interest a few factors need to be considered in order to make a correct determination. That being said, in your case since both of you are on the loan, this typically means your both on title as well. This allows you to establish an equitable ownership, which is required in order to claim the interest.
Another important factor is who makes the payments. If both of you split the mortgage payment, then that also shows that you're taking responsibility for 50% of your share. Therefore, if you only make 50% of the mortgage payment, then you're allowed to claim 50% of the interest. However, if your uncle makes the entire mortgage payment, then you're not allowed to claim any interest. The same thought process is applied for property taxes.
In regards to your question as to you claiming it one year and him another. Under tax law, you can't claim interest for something that you didn't pay for, therefore, unless you paid the mortgage payment the entire year, you won't be allowed to claim his interest nor will be able to claim yours.
Finally, the amount of interest paid for the year comes on a form 1098 Mortgage Interest Statement, which you don't have to wait in order to file as you can typically get this information from your bank over the phone.
EDIT: If this is a rental property then you can deduct other costs. Some of them for example are homeowners insurance, repairs (careful with this as some repairs are more like improvements in which case you will have capitalize them and get a depreciation benefit over the life of the asset), utilities (if Landlord agrees to pay for them)
thank you ![[patriot]](graemlins/patriot.gif)
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"FUCK U PAY ME"
Posts: 992 | From: REDWOOD CITY | Registered: Oct 2003
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ed650
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Member # 9897
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posted
What school do you go to? Im still waiting on my 1098t form...
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306Ci Coupe
Posts: 1744 | From: menlo park | Registered: Apr 2010
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gq916
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Member # 8540
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posted
if both of your names are on the loan and title, one of you can claim 100% of the interest and real estate taxes on that house. You can also do 50/50 if you want.
I've done taxes for 2 sisters for the past 5 years who own a home together and live in it, i always plugged in the interest and taxes to both returns to see which one benefited more and had that sister claim the house 100%. It was usually the one who made more money who it helped more.
[ 2014-01-23, 11:41 PM: Message edited by: gq916 ]
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Posts: 306 | From: sacramento | Registered: Jul 2008
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macthizzle
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Member # 3492
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posted
quote:
What school do you go to? Im still waiting on my 1098t form
I GO TO FOOTHILL. IF YOU GO TO FOOTHILL YOU CAN PRINT IT OFF OF MY PORTAL
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"FUCK U PAY ME"
Posts: 992 | From: REDWOOD CITY | Registered: Oct 2003
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