My aunt and I are thinking about purchasing a condo as income property however I will be the only person on the loan. Is there a way that we can both split the deductions even though I will be the only person listed on the 1099-interest(or mayber its 1098) from the mortgage company?
2006-08-16 18:34:38 · 3 answers · asked by kevgod 1 in Business & Finance ➔ Taxes ➔ United States
If you are both on title for the property you both can take a portion of the deduction. You can split the mortgage interest or any deduction related to the property any way you wish as long as the sum total does not exceed 100% of the allowable deductions. There is a rule that says that you can not take a deduction for a loan for which you are not obligated which would sound as if you can not take a deduction in the case you site. However the IRS has determined that being on title obligates you.
2006-08-16 18:47:22 · answer #1 · answered by ? 6 · 1⤊ 0⤋
The deed or tittle is the important thing
If two people purchase a rental property then 2 people are responsible for gains and losses an taxes. It could be 50 50 or any other % but both get credit for the 1098 figures.
Now if you are making the income and your aunt is not working then it would benefit you more. So check with a tax preparation office or the IRS direct help lines ...
1 800 829 1040
www.irs.gov
good luck ...
2006-08-19 17:08:11 · answer #2 · answered by awaken_now 5 · 0⤊ 0⤋
Yes, list the deductions down on your taxes. If the IRS questions you, show proof of payment and get a letter from your partner.
2006-08-18 06:12:53 · answer #3 · answered by TG Special 5 · 0⤊ 0⤋