topic Second home purchase via HUD foreclosure in Investors & landlords

Second home purchase via HUD foreclosure

ksuwkatz — Fri, 27 Mar 2020 17:13:13 GMT

We bought a 2nd home in another state in 2019 via a HUD foreclosure through a realtor. HUD guidelines mandated it had to purchased as a 2nd home (not a rental). My daughter lives in the home & is paying the mortgage as it was much cheaper than renting. We will sign the house over to her once the 15-year mortgage is paid. Although we paid several thousand dollars to get it up to par, I don't believe I can claim anything other than taxes since it's not officially a rental. Where in TT do I claim it?

Re: Second home purchase via HUD foreclosure

Anonymous — Fri, 27 Mar 2020 17:24:05 GMT

if you paid the taxes they get entered as real estate taxes on schedule A. taxes on a joint return are limited to $10,000 and you itemized have to exceed your standard deduction to get any benefit.

since you are not on the mortgage and didn't pay it the mortgage interest would not be deductible

Re: Second home purchase via HUD foreclosure

ksuwkatz — Fri, 27 Mar 2020 18:55:17 GMT

We (my wife & I) are on the mortgage and paid the mortgage interest. Our daughter is paying the mortgage through us (her credit is atrocious) - not directly to the lender. Everything is in our name until such time she pays the entire mortgage, then we'll "gift" her the house.