curiousgeorge
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Post by curiousgeorge on Apr 6, 2011 14:04:58 GMT -5
Hello tax experts!
Mother owns 3 studio apartments (coops). One in NJ as permanent residence; another in NYC for weekends. A son lives in another NYC unit Mother pays mortgage interest and real estate taxes on all 3 - are they all tax-deductible?
Thanks.
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Taxman10
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Post by Taxman10 on Apr 6, 2011 14:24:04 GMT -5
Does son pay any rent on the one he lives in?
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Post by nancy65 on Apr 6, 2011 16:34:45 GMT -5
Assuming none of them is rented out, property taxes are deductible on all three; mortgage interest is deductible on two.
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mwcpa
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Post by mwcpa on Apr 6, 2011 21:24:15 GMT -5
I agree with Nancy, but note that the total interest that is allowed is limited to 1,000,000 of "acquisition" indebtedness and 100,000 of "home equity".... be sure to read the rules and watch out for the AMT adjustments...
I hope she's not spending more than 183 days in NYC in a year.... she may be a statutory resident....I just had this conversation with someone today who was planning to "move" closer to their job in NJ but keep their NYC co-op.... they were planning to keep their "stuff" in NYC and use the NYC apartment 3-4 days a week... NYS/C may treat them as residents...
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curiousgeorge
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Post by curiousgeorge on Apr 7, 2011 4:49:18 GMT -5
Thanks everyone.
Son does not pay rent - however, if he were to pay the monthly maintenance that includes the real estate tax and mortgage interest on the underlying coop building (not the mortgage interest on the loan for the unit itself), would he be then entitled to the deductions?
Use of weekend place is not more than 183 days; the amounts are nowhere near the limitations.
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mwcpa
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Post by mwcpa on Apr 7, 2011 4:51:38 GMT -5
does son "own" part of the apartment?
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curiousgeorge
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Post by curiousgeorge on Apr 7, 2011 4:58:59 GMT -5
mwcpa,
Good Morning and thank you.
Son does not 'own' part of the apartment now, but plan to make him co-owner sometime this year. He will also then pay the monthly maintenance.
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Post by commentator on Apr 7, 2011 11:31:01 GMT -5
mwcpa, Good Morning and thank you. Son does not 'own' part of the apartment now, but plan to make him co-owner sometime this year. He will also then pay the monthly maintenance. The son has no deduction for 2010. He may have a deduction for a share of real estate tax and mortgage interest after he becomes an owner. The mother MAY have a requirement to file Schedule E for 2010. |
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curiousgeorge
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Post by curiousgeorge on Apr 8, 2011 10:17:50 GMT -5
Thanks commentator,
"The mother MAY have a requirement to file Schedule E for 2010."
Son did not pay rent so no need for Schedule E - correct?
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rangerj
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Post by rangerj on Apr 8, 2011 13:30:15 GMT -5
Is the fair market value (FMV) of the use of the apartment by the son more than the annual gift tax exclusion amount ($13000 approx.). What will be the FMV of the part ownership he will receive, re. possible gift tax return.
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mwcpa
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Post by mwcpa on Apr 9, 2011 18:00:56 GMT -5
"Son did not pay rent so no need for Schedule E - correct?"
Maybe yes, maybe no.... more facts are needed.....
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curiousgeorge
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Post by curiousgeorge on Apr 15, 2011 6:43:07 GMT -5
Thank you everyone.
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