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Author: adumbsnail Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: need quick tax/house advice Date: 4/15/2008 6:53 PM
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*** Cross-posted to the Buying or Selling a Home board. ***

Hello everyone,

I need some advice for a married friend. He and his wife currently live together in a house, but they are looking to temporarily (whatever that means) separate. To that end, they are looking to sell their house, and each get a new place of their own (apartment or house).

Their concerns are as follows:

If they sell the house and both move into apartments, they will end up owing money to the IRS next year because they won't have the mortgage interest deduction. Is there a way around that? Would filing "married separately" address that issue?

If they sell the house and both move into houses, what happens if/when they sell their individual houses in the future in order to move in together again? Will one of the houses be considered a "non-primary" residence because they're still legally married? If that's the case, who determines which residence is the primary one? And, will any profit on the sale of the secondary residence be subject to capital gains taxes?

It's amazing how complicated life can get. Any other related advice is also welcome.

As always, thanks for all of your help,
~snail
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