A second home - temporary

[damianhealey]

I have been using  Turbo Tax Deluxe for many years, last year I got a mortgage for another house for my girlfriend who will pay off the mortgage this year when she sells her current property. I have not received any rent and will not make any money off the property when she pays the mortgage off this year (she has been making all the mortgage payments)

My question is can I use Turbo Tax Deluxe to  file my returns or do I have to use Premier to file my returns .

[Critter-3]

You don't have a rental so the Deluxe will work.

If you qualify   you can use one of  the 10 IRS FREE FILE options to file a fed & state return for free ... but you must log in thru the IRS site :

https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 For Filing Season 2021, you must make $72,000 or below to use one of the 10  IRS Free File partner offers.

If you choose the TT option then you can log in with your same user ID and agree to switch to the FREE FILE option then your progress will be preserved. 

[Irene2805]

Yes - You can still use the Deluxe version of TurboTax.

You can deduct the mortgage interest as long as the mortgage is a secured debt on a qualified home in which you have an ownership interest.  Whose name(s) appear on the 1098, yours and/or your girlfriends?  If your girlfriend is the one making the mortgage payments, it seems like she should be the one to take the mortgage interest deduction. 

Please see the following articles for more information on deducting home mortgage interest:

• Can I deduct my mortgage?
• IRS Publication 936 - Home Mortgage Interest Deduction

[damianhealey]

Thanks for the information.

My name will be on the 1098 - I am handling all the payments and she just gives me a personal check every month.

[TomD8]

Your girlfriend cannot deduct the mortgage interest (or property tax) unless her name is on the deed.  To take those deductions, she must have an ownership interest in the property.

<<"she just gives me a personal check every month.">>

Is your girlfriend living in the house that you own?  If so, your arrangement could be construed as renting not for profit, in which case her payments to you would be considered taxable income.  If you have no lease agreement, your arrangement is called a "tenancy at will."

https://www.investopedia.com/terms/t/tenancy-at-will.asp

[Critter-3]

This arrangement  was made just  to tide her over until her old house sells so she can pay for the new home ... this is not a rental situation but a friend helping another with a tricky financial situation with no profit in mind.   

[damianhealey]

Essentially I just got the mortgage for her as she can't get a mortgage, so as soon as she sells her house she will pay the mortgage off. So could I just have the house as a second home and then sell it to her her for zero profit i assume there will then be no tax implications.