Buying a new home (with some help)

Desiree136 — Wed, 30 Oct 2024 18:17:51 GMT

Hello, I am thinking of buying my first apartment! I live in MO but the appartment is in FL. I will be putting it for rent until im able to move there. My parents would be helping me with the down-payment. I have some questions about the process and how the situation would affect my taxes:

○ How does buying a first home affect or benefit me?

o Since I'm are going to receive a monthly payment for rent, do I have to declare this as profit? Is the monthly mortgage payment for an amount similar to the amount earned tax deductible? In other words, the idea is that my situation does not affect my at all, what comes in (rent) is what goes out (mortgage).

o How does property outside of MO affect taxes?

o Do you have to pay taxes in Florida?

○ My parents are going to put the downpayment in. Can they pay it directly or should I transfer it to my account and pay it myself? If it has to be transferred to my account, does that have any effect on taxes? ○ Is there a monthly or annual maximum that they can transfer to your account without affecting taxes?

Thank you! If there are any additional information I should take into account but have not asked I would appreciate it!

Best,

Desiree

Re: Buying a new home (with some help)

BeckyLeeH — Wed, 30 Oct 2024 18:57:56 GMT

This link may help you understand more about buying your home:
What does buying a home mean for my taxes?
https://ttlc.intuit.com/turbotax-support/en-us/help-article/homeowner-tax-credits-deductions/buying-home-mean-taxes/L0Y1a06Yx_US_en_US?uid=m2w7j98g

Because you going to receive a monthly payment for rent, until you can move into your new home, you will report all income earned and expenses paid on your federal income tax return.
Rent payments you receive are considered taxable income.
This link may help you understand how to report your income and expenses

Rental Property Deductions You Can Take at Tax Time
https://turbotax.intuit.com/tax-tips/rental-property/rental-property-deductions-you-can-take-at-tax-time/L72blTSwA?srsltid=AfmBOoqa4NkdpNrh4bW36yRYvYa4hPzzj_vJUhOcWnUA_s5Ne9fJlsqP#GoTo-Types-of-rental-property-income-and-how-they-re-taxed

Florida does not have a State income tax.

You will include all rental property income and expenses on your MO state tax return:

The following link may help you understand your MO state tax filing requirements:

https://turbotax.intuit.com/tax-tips/rental-property/rental-property-deductions-you-can-take-at-tax-time/L72blTSwA?srsltid=AfmBOoqa4NkdpNrh4bW36yRYvYa4hPzzj_vJUhOcWnUA_s5Ne9fJlsqP#GoTo-Types-of-rental-property-income-and-how-they-re-taxed

This link may help you understand the 2024 annual gift tax exclusion of up to $18,000 (per person) :

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N?srsltid=AfmBOooBcROijLKlrAIwHHijwxMNWRUFAJBZd6SRQQNRbruYLkJ8q3JJ

We do not have enough information about your new home purchase to determine if your parents sould pay the downpayment directly or transfer it to your account.

I strongly suggest you contact a professional about whether they pay it directly or transfer it to your account for you to pay it yourself.

Congratulations on purchasing your first home!

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Buying a new home (with some help)

Re: Buying a new home (with some help)

Rental Property Deductions You Can Take at Tax Timehttps://turbotax.intuit.com/tax-tips/rental-property/rental-property-deductions-you-can-take-at-tax-time/L72blTSwA?srsltid=AfmBOoqa4NkdpNrh4bW36yRYvYa4hPzzj_vJUhOcWnUA_s5Ne9fJlsqP#GoTo-Types-of-rental-property-income-and-how-they-re-taxed

We do not have enough information about your new home purchase to determine if your parents sould pay the downpayment directly or transfer it to your account.

I strongly suggest you contact a professional about whether they pay it directly or transfer it to your account for you to pay it yourself.Congratulations on purchasing your first home!

Rental Property Deductions You Can Take at Tax Time
https://turbotax.intuit.com/tax-tips/rental-property/rental-property-deductions-you-can-take-at-tax-time/L72blTSwA?srsltid=AfmBOoqa4NkdpNrh4bW36yRYvYa4hPzzj_vJUhOcWnUA_s5Ne9fJlsqP#GoTo-Types-of-rental-property-income-and-how-they-re-taxed

I strongly suggest you contact a professional about whether they pay it directly or transfer it to your account for you to pay it yourself.

Congratulations on purchasing your first home!