turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Allowable home office expenses paid by me (mortgage interest, real property tax, home office depreciation) for home owned by parents?

Hello!
I live alone and operate a small business
.  I utilize one of the rooms regularly and exclusively for my business and it's my principal place of business.  I plan to use the Actual Method for calculating home office expenses.  My parents' names are on the deed and mortgage of my home.  However, I make all of the mortgage payments and pay all of the real property taxes and utilities.  We treat it as a co-ownership home, but I'd like to know if you think the IRS will view it that way also.

  • The 1098 is in someone else's name (not a seller-financed loan), but you pay some or all of the mortgage/interest: In most cases you'd have to be the owner of the property to take the deduction. If you can prove you're the owner in every way but in name (constructive ownership), you could still be allowed to take the deduction.  (You could get audited and have to prove constructive ownership. If the IRS doesn't allow the deduction, you may have to go to tax court and argue your case.)You’ll be able to explain in TurboTax why you’re taking the deduction. In the Deductions & Credits section (where you enter mortgage
    interest), check The interest amount I entered is different than what's on my 1098 when entering your info.

 

Based on the above info, on Form 8829 can I:
1. deduct the mortgage interest (line 10b)?
2. deduct the real property taxes (line 11b) ?
3. depreciate the percentage of my home used as my home office (lines 37-42)?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
Vanessa A
Employee Tax Expert

Allowable home office expenses paid by me (mortgage interest, real property tax, home office depreciation) for home owned by parents?

Based on the above info, on Form 8829 can I:
1. deduct the mortgage interest (line 10b)? Yes, but as stated in that post, you would have to prove ownership if audited. 
2. deduct the real property taxes (line 11b) ? Yes, and as stated above, if audited, you would have to prove ownership.  Which if you live there and are making payments directly to the bank, this would be possible.  It may also help to have a written agreement between you and your parents. 
3. depreciate the percentage of my home used as my home office (lines 37-42)? Yes.  This would follow the same principal as above.  If the home is yours, then you would be able to take all deductions that any other home owner would take, you just may have more work to do if you would happen to be audited to prove that the home is constructively yours.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
Vanessa A
Employee Tax Expert

Allowable home office expenses paid by me (mortgage interest, real property tax, home office depreciation) for home owned by parents?

Based on the above info, on Form 8829 can I:
1. deduct the mortgage interest (line 10b)? Yes, but as stated in that post, you would have to prove ownership if audited. 
2. deduct the real property taxes (line 11b) ? Yes, and as stated above, if audited, you would have to prove ownership.  Which if you live there and are making payments directly to the bank, this would be possible.  It may also help to have a written agreement between you and your parents. 
3. depreciate the percentage of my home used as my home office (lines 37-42)? Yes.  This would follow the same principal as above.  If the home is yours, then you would be able to take all deductions that any other home owner would take, you just may have more work to do if you would happen to be audited to prove that the home is constructively yours.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies