I'm buying a house with one of my adult children. It will be her primary residence and I will live elsewhere (I have my own primary residence). All home costs (mortgage, taxes, insurance etc.) will be split 50/50 and the home will be titled to both of us as Tenants in Common. Since she will be living in the home she'll be paying all utility costs, HOA fees, and make any minor repairs. Anything major would be split 50/50.
I believe for my daughter's tax return I include one-half of any interest from the impound account as income and one-half of the mortgage interest and property tax as a deduction. Can I simply include my portion of the interest received, interest paid and taxes paid on my return? Or, must I treat my half as an investment property? If so, what additional forms would I need to file? Can this be accomplished with TurboTax Deluxe?
it depends. You can claim your half of interest received, interest paid and taxes paid in my return on your return. This is not investment property and there are no additional forms to file. This can be all accomplished in Turbo Tax Deluxe because it is treated like a personal residence.
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