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Real Estate Tax Desudtion Wierd Situation

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What is the name of your state? Missouri

Hello,

I posted this question originally in Real Estate Law, but was told to place here so, here goes:

Help! Real Estate Taxes Possessory Tenant


My evil-stepmother-in-law received a life estate in my FIL's house, but is required to maintain, pay inusurance and not co habitate. Insurance on the house is about $2,800 annually and real estate taxes are about $2,500 anually. The question is: who can take credit for the taxes on their real estate> The tenant does not own the house, but is required to pay the erxpense. My BIL and wife are the remainerman. They want to offer to buy her out for, but are unsure about the tax issue.

Thanks!

Mike
 


LdiJ

Senior Member
What is the name of your state? Missouri

Hello,

I posted this question originally in Real Estate Law, but was told to place here so, here goes:

Help! Real Estate Taxes Possessory Tenant


My evil-stepmother-in-law received a life estate in my FIL's house, but is required to maintain, pay inusurance and not co habitate. Insurance on the house is about $2,800 annually and real estate taxes are about $2,500 anually. The question is: who can take credit for the taxes on their real estate> The tenant does not own the house, but is required to pay the erxpense. My BIL and wife are the remainerman. They want to offer to buy her out for, but are unsure about the tax issue.

Thanks!

Mike
In order to take a deduction for real estate taxes, a person has to be legally responsible to pay the taxes, and must actually pay them. Therefore it appears that the stepmother would be the person who could claim the taxes. She is legally responsible to pay them under the terms of the life estate, and she is also the person actually paying them.

If your BIL buys her out, then she gives up the life estate, and then he would be both responsible to pay the taxes, and would be actually paying them.
 

abezon

Senior Member
Make sure you confirm with the county & insurance companies that she is paying the taxes on time & not cancelling the insurance immediately after getting a receipt to show you.
 

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