I have a rental property. If I am not on the title, but all of the financing (mortgage, heloc) is in my name, who gets to claim the property?

[tagteam · Accepted solution]

Generally, it is the owner(s) who report income and expenses from the rental, including any interest expense.

Regardless, you need to provide more details. Why are you not on title but, ostensibly, providing all of the financing for the rental property?

[alfred6]

Thanks tagteam!

The situation is complicated, as it's for my mother. The hope is that this an option to sell the property as a first home to avoid capital gains tax after 2 years.

I haven't transferred the title yet and wanted to ask in the very unlikely event of which I mentioned. At that point, it would not be an investment/rental property and would be claimed as her home.

[tagteam]

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@alfred6 wrote:

The situation is complicated, as it's for my mother. The hope is that this an option to sell the property as a first home to avoid capital gains tax after 2 years.

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I understand, but is your mother on title or not? In order to use the Section 121 exclusion, she has to have an ownership interest.

[Carl]

For the mortgage interest, only those who have a legal obligation to pay it, can claim/deduct it.

For the property taxes, only those who have a legal obligation to pay it, can claim/deduct it.

For both, there are two rules in order to claim it on your tax return.

1. Must be legally obligated to pay it.

2. Must "actually" pay it.

[alfred6]

Apologies for the confusion. I was considering the event I initially posted, and realized that if I transferred the title to her, she would claim the property as her own property and I would not claim the property under any circumstances on my tax forms.