I co-own a house with a couple, but don't live there. The other co-owners uses it as their primary residence. I helped with the acquisition of the property (paid for most of down payment and closing cost), but they make all the monthly mortgage and insurance payments as well as property tax and pay for upkeep. From my perspective the mortgage payment and the upkeep is "rent". We are all on the mortgage and the property deed.
1.) Can this property be considered an investment property for me and a primary residence for the other co-owner?
1a.) If it can be considered an investment property for me, can I write off depreciation as an expense on my tax return?
1b.) If not, is it because the other co-owner is paying for property tax and maintenance?
1c.) Would that change if I paid for part of or all of property tax and maintenance? (Or perhaps, regardless of who's paying for what, it can't be both an investment property and a primary?)
2.) Say we go to sell this house in 5 years for a net profit of $500,000. Can the co-owners (married filing jointly) get the full $500,000 exemption if they've lived there the whole time?
3.) Basically, what can I do to maximize my tax benefits and what can my co-owners do to maximize their tax benefits in this situation?
Thank you!
