Home purchased

3 replies
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My Daughter and I purchased a home paying cash. Both of us are on the title how do we file taxes on this. My Daughter is the only one residing in the house.

rjsAnswer

Level 15

Expert Reviewed

You do not report the purchase of a home on your tax return.

The usual tax deductions for owning a home are mortgage interest and real estate tax. Since you do not have a mortgage, your only deduction would be for real estate tax. Whichever one of you actually pays the real estate can claim the deduction. For 2025, the total deduction for state and local taxes is limited to a maximum of $10,000 per year ($5,000 if you are married filing separately). The maximum might be increased for future years by the tax bill that is currently being considered in Congress. The maximum applies to the total of real estate tax, personal property tax, and either state and local income tax or state and local sales tax. The deduction is an itemized deduction, so it will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction.

VolvoGirl

Level 15

The only thing you might be able to deduct is the property tax since you don't have any mortgage interest. Whoever pays the property tax can deduct it. And then all your itemized deductions have to be more than the standard deduction to get any benefit (so you would only be getting the benefit of the amount that puts you over the standard deduction).

E

engintechAuthor

Level 2

Sounds good She pays the property tax so will deduct it on her taxes. Appreciate the feedback!

rjs

Answer

Level 15

Expert Reviewed

You do not report the purchase of a home on your tax return.

The usual tax deductions for owning a home are mortgage interest and real estate tax. Since you do not have a mortgage, your only deduction would be for real estate tax. Whichever one of you actually pays the real estate can claim the deduction. For 2025, the total deduction for state and local taxes is limited to a maximum of $10,000 per year ($5,000 if you are married filing separately). The maximum might be increased for future years by the tax bill that is currently being considered in Congress. The maximum applies to the total of real estate tax, personal property tax, and either state and local income tax or state and local sales tax. The deduction is an itemized deduction, so it will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction.