Hi I currently live in NH with a friend. My friend owns the condo we live in. In May of 2006 I purchased a brand new home in Florida with the idea of me moving there. Family circumstances changed and I never moved but still bought the house. Basically I have had the house in FL ( only going down there 3x since (empty house but being taken care of) and have been paying my mortgage..etc since May 2006. Is there any way of me claiming anything on my taxes?? or deductions?? mort. interest etc.. I am now planning on selling it...what will happen to me tax wise?? again I have owned this since May 2006- never lived there just paying the mortgage..etc. Any ideas for me...what are the facts for me with filing my tax return? I filed my taxes last year and did not include anything about this house...please help any info and tax advice..THANK YOU!!
2007-12-12 12:48:53 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If it's not your home you can't deduct the interest or real estate taxes. You might be able to call it your second home and deduct the interest and real estate taxes that way - if when you did go down there to visit you actually stayed at the house you might be able to make a case for that, but if it's totally empty that would be shaky. The IRS definition of "second home" is pretty open, so you'd have a reasonable chance though of deducting the interest and taxes if you itemize.
It's not investment property, so you can't take expenses that way either. And if you get real lucky and make a profit on the sale, you'll have to pay tax on that profit, won'd be able to exclude it since you didn't live there for the required time.
2007-12-12 13:01:45 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You can always deduct real estate taxes regardless of the use of the house. Amend your 2006 return and at least deduct those real estate taxes.
Since you did not rent the house, and your mortgage application surely shows that you intended to use this house as your personal residence, you should be taking the mortgage interest deduction on the house as well. I would amend the 2006 return and also take the mortgage interest.
Since you have owned the house for a year, when you sell it, your gain would be taxed at a maximum of 15%. The rates for 2008 will drop and your taxes could be even lower.
Since this is personal use property, you would not be able to deduct any loss you have on the sale of the house.
2007-12-13 01:16:49 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
Interest and taxes would be dedutible as a second home. As it was not you personal residence, you would have to pay taxes on any gains made at sale.
You can amend last yrs return to claim the int and r e taxes if this gives you enough to itemize deductions or if you already itemized you can add these amounts. You would get an additional refund for the 2006 return.
2007-12-12 23:04:46 · answer #3 · answered by irongrama 6 · 0⤊ 0⤋