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Property tax

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kc751y

Junior Member
My boyfriend and I are buying a house together. We are not married but planning to get married in a year or so. The mortgage will be on his name only, but the title of the new house will be held by both of us as “Joint Tenancy With Right of Survivorship”. Can I claim half of the interest paid and property tax on my tax return since I will be paying for half of the mortgage?

I currently own another house by myself. I would like to add my brother’s name to the title as “Tenants in common”. We will not refinance (his credit is not so good) and he will pay the remaining mortgage on the house. Can he claim the interest paid and the property tax on his tax return? If so, can he claim all or half? Will he have to pay gift tax?

Now that I will have ownership on two properties, will I have to pay more property tax on one of the houses as it will not be my primary residence?

Thanks.
 


abezon

Senior Member
1. Why split the deductions? Have one person claim all itemized deductions & the other claim the standard deduction. This maximizes the amount of household income that is not taxed.

2. The IRS allows non-owners to deduct interest & taxes when the situation indicates that the owner was just getting the mortgage in his/her name because the non-owner had bad credit. Put your agreement with bro in writing & let him deduct all interest & taxes.

3. YOU will have to file a gift tax return for gifting bro 1/2 of the equity in the house when you put it in his name. You probably won't pay any actual gift tax, unless you've already gifted away $1.5M.

4. I doubt it. Call the county assessor's office & ask if there's a different rate for non-owner-occupied houses.
 

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