Purchasing property with daughter

[rosey]

What is the name of your state?What is the name of your state? Florida
I would like to provide the down payment for a property; my daughter would live there; she would pay the interest on the mortgage; I would pay the principle and the property taxes.
First is this with in the law?
Second, she would like the advantage of writing off the interest on her federal income taxes. Is this with in the law?
Whose names should be listed as owners in order to have these financial benefits?
I would benefit (or not) on the value of the property when sold after 2 or more years.
Please advise.
Rosey

[john123456]

Originally Posted by rosey

What is the name of your state?What is the name of your state? Florida
I would like to provide the down payment for a property; my daughter would live there; she would pay the interest on the mortgage; I would pay the principle and the property taxes.
First is this with in the law?
Second, she would like the advantage of writing off the interest on her federal income taxes. Is this with in the law?
Whose names should be listed as owners in order to have these financial benefits?
I would benefit (or not) on the value of the property when sold after 2 or more years.
Please advise.
Rosey

Rosey:

You might want to move your question over to the tax forum. I am sure you will get the information you need. Good luck.

[HomeGuru]

Originally Posted by rosey

What is the name of your state?What is the name of your state? Florida
I would like to provide the down payment for a property; my daughter would live there; she would pay the interest on the mortgage; I would pay the principle and the property taxes.
First is this with in the law?
Second, she would like the advantage of writing off the interest on her federal income taxes. Is this with in the law?
Whose names should be listed as owners in order to have these financial benefits?
I would benefit (or not) on the value of the property when sold after 2 or more years.
Please advise.
Rosey

**A: the answers are all yes. See a real estate tax specialist. And make sure you are on the deed to the property along with your daughter.

[rosey]

Originally Posted by HomeGuru

**A: the answers are all yes. See a real estate tax specialist. And make sure you are on the deed to the property along with your daughter.

Thank you. I will look for a real estate tax specialist.

[JETX]

Originally Posted by rosey

I would like to provide the down payment for a property; my daughter would live there; she would pay the interest on the mortgage; I would pay the principle and the property taxes.
First is this with in the law?

Based solely on your post, yes.

Second, she would like the advantage of writing off the interest on her federal income taxes. Is this with in the law?

Unless the mortgage is in HER name... no.

From IRS Publication 936:
"You can deduct home mortgage interest only if you meet all the following conditions:
• You must file Form 1040 and itemize deductions on Schedule A (Form 1040).
• You must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them. Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.
• The mortgage must be a secured debt on a qualified home.
[url]http://www.irs.gov/pub/irs-pdf/p936.pdf[/url]

Whose names should be listed as owners in order to have these financial benefits?

Ownership has nothing to do with it. The issue is the mortgage.

[HomeGuru]

thanks JETX.