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Financial Planning / Tax Strategies
|Subject: Re: Payments On UnOwned Property||Date: 10/1/2013 2:56 PM|
|Author: Wradical||Number: 119235 of 122295|
My wife gifted her rental summer home to her youngest son. It turns out that the official date was December 28th, 2012, but this was not official to us until months after the fact because ,when we checked the ownership online, we got my wife as the owner. In the meantime, my wife paid insurance, taxes, utilities, and other expenses on the cottage.
When the ownership of the property became official to us, the son took over paying the expenses, but is my wife allowed to take what she paid as a business expense even though she didn't own the business?
I'm not sure I understand your use of the phrase "this was not official to us."
What really happened on 12/28/12? Is that when your wife signed the deed and gave it to the son? And if so, was the deed recorded shortly thereafter? Was a transfer tax filing (or waiver, for related parties) involved? If so, that would have been done when the deed was recorded, normally.
Were you just going by the fact that the city/county was slow in updating their website? Even though, knowing full well that you had disposed of the property?
Nope. I don't see a tax deduction there. If the expenditures in question exceeded $14,000 she might even have a reportable gift this year.
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