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Confucius101
Returning Member

Need REAL advice on real whether I can claim any taxes on a real estate property as i acted as legal property owner with payments and responsibilities while i was in a Real Estate Purchase Agreement and for 24 months.

My brother in law, husband, and I signed a generic and vague Real Estate Purchase Agreement for a property he owned which stated it was valid for 2 years. As stated in the agreement i was to obtain a mortgage loan by the end of the 2 years, but UNTIL THEN I WOULD act as property owner handling all the property payments and responsibilities (mortgage, 2nd mortgage on property, water bill, property tax, house insurance, maintenance, paid the deposit of the last tenants he evicted from the property so I could move in as new soon to be owner, fix, clean up, repair property to make  it livable for my children which we moved in 3 months after the start of the contract), also give him $10,000.00 Earnest money in cash in two seperate payments.  I have been acting as legal owner with all property fees and loans but the property was not in my name,  can i claim the 2 years i paid property tax, Insurance, and the 2 mortgages on the house, along with the 10,000.00 cash for earnest money??  This aggreement was offered to my husband and I by my sister and her husband who was also aware and knew that we wouldnt qualify for a loan after the 2 years because we were wrong on our credit. They lead us to believe they would continue the agreement for us even after 2 years because we we not going to even qualify for a loan and we were family.  I had to repair and use money I didnt  have to fix this property and found out when I moved in,that  the heater in the house didnt work!! My children and I survived our first winter with no heat. I was told by my brother in law when I finally detected this other  issue that I am buying the property so I'm the landlord and he cant help me or point me in any direction. Am I able to claim anything in this agreement mess I did so stupidly??

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1 Reply
HelenC12
Expert Alumni

Need REAL advice on real whether I can claim any taxes on a real estate property as i acted as legal property owner with payments and responsibilities while i was in a Real Estate Purchase Agreement and for 24 months.

No, you can't deduct property taxes because you don't own the property. You can't deduct the home improvements, bills or insurance since those are not deductible (even if it's personal property you own).

 

For additional information, see Can I deduct property (real estate) taxes?

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