My father and sister own a home together, there is two residences on the property. They file taxes separately, how do we, or do we not claim my father as a home owner.

Forum|Forum|4 years ago
June 22, 2022
4 replies
24 views

He is only on the Deed in name. He pays "rent" that goes to the mortgage for the mother i law unit he lives in. My sister is the primary on the loan. They do not claim or reside as a family unit. She is seperated from her husband and he is not on the loan.

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Critter-3

Level 15

Each owner will deduct the RE taxes & mortgage interest they actually paid on their own tax return. The rest of the facts are immaterial ... "rent" cannot be paid by an owner of the property to the other owner.

xmasbaby0

Level 15

And....it might be moot anyway. Why do you want to "claim" him as a home owner? Do you mean you want to enter mortgage interest or property tax he paid on his tax return? Unless he has enough itemized deductions to exceed his standard deduction, the home ownership has no effect whatsoever.

If in fact your dad paid mortgage interest and/or property tax, then you can enter the amount HE paid on his Schedule A. But if it does not exceed his standard deduction -(SINGLE $12,550 (65 or older + $1700) -- then it does not matter and he will just get the standard deduction on his tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Carl

Level 11

Lacking a lot of clarity here. My question is, what qualifies you (or anyone else for that matter) to claim your father as a dependent? This is not a rhetorical question. There could be valid reasons.

Or are you asking because you are completing your father's tax return for him?

Opus 17

Level 15

To deduct mortgage insurance and property taxes, you must be an owner of the home AND be the person who actually pays the taxes and mortgage interest. It sounds like that is your sister.

If your father pays half the mortgage payment (for example), he could potentially deduct half the interest and taxes and your sister deduct the other half. But as pointed out, he won't benefit from the deduction unless his total of all itemized deductions is more than his standard deduction (which might be $12,550 if he is single or $13,900 if he is also age 65 or older.)

There is no requirement or process to "list" him as an owner on the property unless he is deducting the interest or taxes.

When the property is sold, the ownership situation could affect the tax consequences, so you might want to have the situation reviewed by an estate planner. If your father is elderly and you are planning for the future, you may want to engage an elder law firm who can help with estate planning and asset protection.