we both own a home as a primary residence, but we rent one and live in the other
2007-10-21 14:52:46 · 11 answers · asked by del 2 in Business & Finance ➔ Taxes ➔ United States
Check it both ways, and find out which would benefit you the most. usually married is best.
2007-10-21 14:58:04 · answer #1 · answered by Mr. Prefect 6 · 2⤊ 1⤋
If you were married as of 12/31 you should file Married. Filing separately would screw up your itemized deductions... (if you file separate only one is allowed to itemize regardless if you both can itemize or not)... and with two houses, it would work out the best to file married, jointly.
and be careful if you decide to sell the 'rental' you would have to pay capital gains tax on it because it's not the primary residence.
good luck.
2007-10-21 17:02:50 · answer #2 · answered by stephanie_hamett 2 · 0⤊ 0⤋
Your filing status choices are married filing jointly or married filing separately. You can choose to do either. Have your taxes figured both ways to see the difference, and then decide.
If you file separately, you must both either take the standard deduction, or both must itemize. Both of you can list all of your itemizations on separate returns, there is no restriction that one spouse cannot list the itemized deductions.
2007-10-21 17:23:37 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
You will file as married if you are married on 12/31 of that tax year. You can file a joint return, or file as married filing separately. Usually joint turns out better for you financially overall.
If you are renting one house out, you will claim that income and associated expenses on your tax return - I assume that you already know that.
2007-10-21 15:33:34 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
You have the choice of filing as married filing joint or married filing separately. 99% of the time, maried filing joint is going to be your best option. Many of the tax credits are not allowed for filing separate.
As long as you are married and living together, you must file as married.
2007-10-21 15:04:19 · answer #5 · answered by Gypsy Girl 7 · 1⤊ 0⤋
You can't call both homes a primary residence. Your primary residence (the IRS calls it your "main home") is the one where you live. Most people get a big tax break when they sell their main home. When you sell the rental, you usually will pay tax on it.
2007-10-22 05:46:28 · answer #6 · answered by r_kav 4 · 0⤊ 0⤋
Your filing status is based on your marital status on the last day of the year, regardless of the length of the marriage. So your options are joint or married filing separate. Do it both ways, but generally joint works out better.
2007-10-21 15:00:07 · answer #7 · answered by Anonymous · 1⤊ 0⤋
As long as you are married on Dec 31, you will file as married. Deciding to file separate returns or a joint return is up to you.
2007-10-21 15:03:42 · answer #8 · answered by Steve 6 · 1⤊ 0⤋
That occurred to me some years in the past. yet we separated in June. I went to Liberty Tax and that they have got been going to value me a lot and that i develop into going to receive infrequently something. yet then i stumbled in this tax guy who had years adventure and informed me that on account that we've been a minimum of six months separated i could record head of enjoyed ones and declare our son. on account that i develop into holding my own living house and looking out after our son i develop into waiting to receive a lot returned. i does not advise Liberty tax to every physique. good success!
2016-10-04 07:57:48 · answer #9 · answered by ? 4 · 0⤊ 0⤋
You should try both ways and whichever give you the advantage, file that way. I would definitely use a web based service like TurboTax. They seem to be very user friendly.
2007-10-21 15:20:23 · answer #10 · answered by Paulus 6 · 0⤊ 0⤋
Married Joint or married filing separately, one or the other, you will allways make out paying less tax filing Married Joint
2007-10-21 15:01:14 · answer #11 · answered by Whoa_Phat 4 · 0⤊ 2⤋