Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Re: homeowners tax when no mortgage? Date: 7/12/2000 11:50 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< My fiance and I are house shopping. A family member has offered to "loan" us the money for a house, as long as it goes in my name (and not both of ours). How will this affect us when we file our taxes once we are married? Do we need to file separately? Because we have no mortgage interest, is there any other deductions we can make or is it possible we might be penalized? >>

OK, first let's get rid of those quotation marks and find out what's really going on. If the relative is giving you a gift of the money to buy the house, I'd recommend that you write a nice thank you letter and put the house in your name alone. You can always convey joint title down the road, handling "God forbid" transfer through your will in the meantime.

If the relative is loaning you the money, make sure that the paperwork is in order and that the loan is secured by the property. The relative is going to have interest income anyway, so you might as well get the deduction for residence mortgage interest.

There are few occasions when one is required to file married, filing separately. Separate ownership of property is not one of them.

I'm not sure what you mean by "penalized" in your last question. Even if you have no mortgage interest you'll have real estate taxes. If you don't have enough itemized deductions to make it worth your while, then you'll use the standard deduction.

You might want to do some reading in IRS Publication 936 and also take a look at the Schedule A to see what itemized deductions are available.

TMF ExRO
Phil Marti
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement