We are obviously filing seperately.. can both of us claim the credit for buyign the condo or only one of us. Also, for renovating the place and other home-makeover related expenses... how does it work for people who file seperately?
2007-12-14 07:47:16 · 7 answers · asked by evelinka420 3 in Business & Finance ➔ Taxes ➔ United States
The tax deductible expenses are mortgage interest, real estate taxes, and the "points" on the loan. There are no tax deductions for renovations or "makeover" expenses.
You should each claim a percentage of the credits based on your stake in the property. If you each make half of the payments, you each get half of the credits.
2007-12-14 07:59:54 · answer #1 · answered by Stacia Z 3 · 0⤊ 0⤋
The receipts for renovations are used to deduct from your capital gains if sell the condo with in 2 years of owning it. The only person(s) this benefits is the person(s) on the mortgage. You file taxes just as before.
2007-12-14 08:04:55 · answer #2 · answered by 2U2 4 · 0⤊ 1⤋
The renovation and home makeover expenses are real easy - they aren't deductible so aren't an issue.
For mortgage interest and real estate taxes, if you are both on the mortgage and split the payments, you can split the deduction between you.
2007-12-14 19:08:58 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
I would have to disagree with the answers above regarding how interest and real estate tax deductions are claimed in this case.
To be able to claim a deduction for mortgage interest and real estate taxes, one must both be legally obligated to pay and actually pay them. You and your partner (assuming both your names are on the deed) can only deduct the portion of the interest and taxes you each actually pay.
The best thing to do is a tax projection, and compute the best tax outcome under different what-if payment situations.
2007-12-14 14:14:38 · answer #4 · answered by taxreff 7 · 0⤊ 0⤋
Keep all copies of every file and receipt, just be aware that not all can be separated equally in half if the two of you are going to do renovations.
Another suggestion is that at least for the first year that you will be filing, to just go ahead and pay an accountant to prepare the taxes. There might be extra pages you might need to file that you might not be aware of, and you can use it as a template for following years.
2007-12-14 07:55:34 · answer #5 · answered by bethanne 6 · 0⤊ 0⤋
half and half. Keep track of expenses that can be deducted, each one gets to deduct half of the actual amount. Set up a file for the property and keep track of all expenses, upkeep etc for futures.
2007-12-14 07:53:11 · answer #6 · answered by gloria s 2 · 0⤊ 0⤋
each and each of you may deduct the quantity you certainly paid. in case you chop up the funds 50-50, then you definately might each and each deduct 0.5 of the entire interest, and genuine belongings taxes in the event that they're paid in the process the very own loan fee. This assumes which you're the two on the very own loan and on the call.
2016-12-31 11:19:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋