My significant other just bought a condo together this year . She makes double my salary but I own another condo that I rent out (barely covers my mortgage). We are trying to decide who will benefit from taking the mortgage interest deduction and how we will get the most money back from our taxes?
2007-01-18 05:57:52 · 4 answers · asked by bbtb 1 in Business & Finance ➔ Taxes ➔ United States
I'm assuming that you are joint tenants in the property and not married. As a practical matter, your significant other will benefit more from the deduction/tax loss than you will. Legally, however, the rental income and deductions need to be distributed 50/50, unless there is an agreement to the contrary (since you are not married, I would advise you to stick with the 50/50 in case your relationship heads south on you.)
2007-01-18 06:07:07 · answer #1 · answered by Scott K 7 · 0⤊ 0⤋
Personally, if your tax person has the time, try it both ways. If both your names on the property, you're both able to take the deduction so try to see who can get the most money back before you decide. There a lot of tax matters that can be flipped to the other individual if planned correctly. I do this a lot with some of my clients that aren't married, but own a home.
2007-01-18 14:31:13 · answer #2 · answered by slheeley 1 · 0⤊ 0⤋
You would have to do it both ways to see which way you would benefit more. Any questions contact me
2007-01-18 16:25:21 · answer #3 · answered by shaydzofluv 2 · 0⤊ 0⤋
File together and use a scedule C for the rental and you will do JUST fine
2007-01-18 14:00:55 · answer #4 · answered by golferwhoworks 7 · 0⤊ 1⤋