I'm buying a house that will be completely in my name, but both myself and my fiance will live in it. I bought the house with the intention of my then girlfriend (now fiance) helping pay part of the monthly living expenses (mortage, utilities, etc.). The house will be the primary (only) residence for both of us. Since I'm the owner, I'll be writing the checks to the bank for the mortgage and she'll be giving me a check every month. Is her payment to me considered taxable income for me? Is there a special tax-free provison for shared living expenses? I know it won't matter after we get married, but that won't be until early 2008. Do I have to report every penny that she pays me for the mortgage in 2007?
2007-02-28 17:31:35 · 5 answers · asked by Michael B 1 in Business & Finance ➔ Taxes ➔ United States
It may be to your advantage to consider her your tenant for 2007. You would record her payment to you as rental income, and then you could deduct half of the mortgage interest, half real estate taxes, half of the utilities, half the repairs and maintenance etc. on Schedule E. Plus, you can depreciate 1/2 of the house for the year 2007.
You would likely generate a loss that would reduce your taxes.
You would be able to get some deductions on Schedule E that you cannot get otherwise (such as 1/2 of the utilities, which cannot be deducted for your personal residence).
You would be able to get deductions on Schedule E even if you do not have enough personal deductions to itemize on Schedule A.
2007-03-01 02:04:58 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Don't pick up her reimbursements as taxable income. If anything, report the amount of mortgage interest you actually paid (50%) as an itemized deduction on Schedule A...if that makes you feel better.
2007-02-28 18:17:39 · answer #2 · answered by tma 6 · 0⤊ 0⤋
Sharing of expenses as roommates has no tax consequences for either of you. You don't claim it as income.
Unless she actually made half of the mortgage payments herself directly to the lender, you are entitled to the full deduction for mortgage interest. Ditto for property taxes.
2007-03-01 00:14:44 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
it depends. you can use it as tax but y would you want to?
keep cash better
2007-02-28 17:34:56 · answer #4 · answered by Anonymous · 0⤊ 2⤋
get some real advice, don't look here for it for goodness sakes!
2007-02-28 17:35:18 · answer #5 · answered by Anonymous · 0⤊ 2⤋