It's complicated. On your federal tax return it could affect your deductions for real estate tax and mortgage interest. On your New Jersey tax return it could affect your Property Tax Deduction or Credit. It could also affect your New Jersey Homestead Benefit. If you or your wife are 65 or older it could also affect your Property Tax Reimbursement (PTR or "Senior Freeze"). The Homestead Benefit and Property Tax Reimbursement are not on your tax return, but they could affect the deduction for real estate tax on your federal tax return. And it could significantly affect how much federal and state tax you have to pay when you eventually sell the home. There are many other factors involved besides whose name is on the deed. Consult a local tax professional in New Jersey.
