Hello!
I live alone and operate a small business. I utilize one of the rooms regularly and exclusively for my business and it's my principal place of business. I plan to use the Actual Method for calculating home office expenses. My parents' names are on the deed and mortgage of my home. However, I make all of the mortgage payments and pay all of the real property taxes and utilities. We treat it as a co-ownership home, but I'd like to know if you think the IRS will view it that way also.
- The 1098 is in someone else's name (not a seller-financed loan), but you pay some or all of the mortgage/interest: In most cases you'd have to be the owner of the property to take the deduction. If you can prove you're the owner in every way but in name (constructive ownership), you could still be allowed to take the deduction. (You could get audited and have to prove constructive ownership. If the IRS doesn't allow the deduction, you may have to go to tax court and argue your case.)You’ll be able to explain in TurboTax why you’re taking the deduction. In the Deductions & Credits section (where you enter mortgage
interest), check The interest amount I entered is different than what's on my 1098 when entering your info.
Based on the above info, on Form 8829 can I:
1. deduct the mortgage interest (line 10b)?
2. deduct the real property taxes (line 11b) ?
3. depreciate the percentage of my home used as my home office (lines 37-42)?
