purchase second home

Forum|Forum|2 years ago
March 19, 2024
3 replies
35 views

My adult son and I purchased a home with each having 50% ownership. This will be his second home and will be my second home. I will not be charging rent, nor will I be living there. How do I report the adjusted basis for this home?

Mike9241

Level 15

you don't report the basis of the property anywhere, but keep track of it because when it's sold there may be a need to report it. You are allowed to deduct your share of property taxes and interest that is paid. points on the mortgage would have to be amortized over the life of the mortgage. The deductions would go on schedule A and to be of tax benefit, the total itemized deductions would have to exceed your standard deduction.

Taxes are limited to $10,000 on schedule A.

Mike9241

qnwa01Author

Level 2

Thank you for your response. I previously owned 2 houses which are not rental properties. Since this is 1/2 ownership of a third non rental home, am I allowed to seek 1/2 credit for property taxes on this house as well?

DawnC

Level 15

Yes, if you paid the taxes. If you itemize your deductions, you can deduct the property taxes you pay on your main residence and any other real estate you own. The total amount of deductible state and local income taxes, including property taxes, is limited to $10,000 per year.

Can I Deduct Real Estate Taxes?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"