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deadman
New Member

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

I stayed the whole year in CA, US so I think I count as a resident alien. I am a co-owner of the house my parents currently live in. I send money for their and house's maintenance. Since I don't make money out of it do I get tax deductions for the maintenance I send?
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pk
Level 15
Level 15

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

Agreeing with @Carl, I wonder what you mean by co-own. Does the property belong to your parents and you were gifted or expect to be the beneficiary at their passing or what? Whereas these do not make a difference in India, if you are a US resident, the type of ownership  or transfer may make a huge difference when you dispose off the property.

Note also that as a second home , while property taxes and mortgage interest paid by you may be deductible , nothing else is. Also to the extent that you are personally liable for these amounts  and that you actually pay, are deductible ONLY when itemized  and under the current limitations).

Are you a resident or resident for tax purposes or a visitor in the USA -- what visa or is it Green Card?

Namaste ji

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6 Replies
Carl
Level 15

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

My initial impression is that this is not rental property, or any other kind of income producing property. It's basically your 2nd home. That's it. All you get to claim/deduct is mortgage interest and property taxes you paid in the tax year.
Now since you are a co-owner of this property, that means you can only deduct the interest and property taxes that you "actually paid" in the tax year.
pk
Level 15
Level 15

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

Agreeing with @Carl, I wonder what you mean by co-own. Does the property belong to your parents and you were gifted or expect to be the beneficiary at their passing or what? Whereas these do not make a difference in India, if you are a US resident, the type of ownership  or transfer may make a huge difference when you dispose off the property.

Note also that as a second home , while property taxes and mortgage interest paid by you may be deductible , nothing else is. Also to the extent that you are personally liable for these amounts  and that you actually pay, are deductible ONLY when itemized  and under the current limitations).

Are you a resident or resident for tax purposes or a visitor in the USA -- what visa or is it Green Card?

Namaste ji

Carl
Level 15

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

@vpshastry PK is more familiar with things that can affect resident aliens than I am, so please provide the information he's requesting as it's highly possible PK may have additional information I'm not aware of, that could affect your situation. If a VISA is involved, you need to indicate what type of VISA you are here on, or came here on.
deadman
New Member

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

Thanks Carl.

@pk It's actually shared ownership of me and my parent right now. I'm resident with H1B visa staying staying in US since more than 2 years.

Grasping by your answer I incur that it's only the tax paid against it is deductible and nothing else. So, no other expenses are tax deductible like remodeling etc?
Carl
Level 15

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

That's correct. On a primary residence, 2nd home or vacation home the only thing deductible is mortgage interest and property taxes. Absolutely nothing else, with no exceptions.
deadman
New Member

Resident alien in CA and a co-owner of a property in my home country. Parents stay there so don't make any money out of it. Do I get a tax deduction on that?

Thanks!
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