My sister has a piece of property on which she can not pay the taxes. Am I or is she the person that gets the writeoff? I will be the one who pays.
2006-10-20 06:01:37 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Only real estate taxes paid on property you own is deductible. Get her to put you on the deed. And the only time you "forfeit" your standard deduction is when you file as Married Filing Separately and your spouse files a Schedule A. Merely having real estate taxes does not forfeit anything.
Now, for some real actionable advice. If your sister is in temporary dire straits, why don't you just GIVE her the money and let HER pay the taxes. Now, she gets credit for them on her Schedule A and it is perfectly legal. Just try to not "give" her more than $11,000 per year.
OR
Buy the property from her if she is in permanent dire straits...then you will pay the tax AND get the write-off.
OR
Pay her for 1/2 of the value of the property and have her put you down as part owner. Then, she gets some much needed funds and you get to pay the Real Estate taxes each year and write the whole thing off.
OK?
2006-10-20 10:15:48 · answer #1 · answered by TaxMan 5 · 3⤊ 0⤋
If you pay property taxes on property that your sister owns, neither of you can take the writeoff - you can only deduct taxes that you pay, on property that you own.
2006-10-22 02:55:11 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
No. It's not a charitable deduction either because your sister is not a qualifying charitable organization.
2006-10-20 16:00:28 · answer #3 · answered by porkchop 5 · 0⤊ 0⤋
this is a charitable donation to a relative. it is not deductible.
if she puts you on the deed it can be on schedule A, but you forfeit your regular standard deduciton so make sure it is big enough to be worthwhile.
2006-10-20 13:08:33 · answer #4 · answered by Anonymous · 0⤊ 3⤋
I'm sure that this is very specific to the state in which you live.
2006-10-20 13:06:42 · answer #5 · answered by KYRealEstateGuy 4 · 0⤊ 2⤋