Claiming Parents as Dependents for the First Time

[RR2]

I pay approx. $2000 per month for my parent's apartment and car.  My father receives Social Security of about $1000 per month.  My mother works part time to stay busy and made approx. $5000 for 2016.

My parents have always filed jointly.

If I want to claim them as dependents can I do that for one or both of them?  How do my parents have to file?

Also, my father has a large long term loss that he has been carrying for many years.  If I claim him as a dependent will he lose this?

[DS30]

It depends. However, you will not be able to claim your father's unused capital loss carryover on your federal income tax return.

You would be able to claim one or both of them if they meet all the required tests for a qualifying relative. Based on the information that you provided, you would not be able to claim your mother (who would fail the income test) but you might be able to claim your father (if his only source of income is social security income). If you are able to claim your father, your parents may not be able to file jointly.  

You could claim your elderly parents as dependents even if they don't live with you for the entire year as long as they meet the qualifying relative test:

An individual must meet all 4 of these requirements in order to be considered your Qualifying Relative:

1. Not a Qualifying Child: The individual cannot be your Qualifying Child and cannot be someone else's Qualifying Child. They are a Qualifying Child if they meet all the requirements, whether or not they are claimed as a dependent
2. Relationship: The person must either have lived with you for the entire year as a member of the household (a person who is not actually related to you may meet the requirements in this way), or be related to you in one of the following ways: your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children), son-in-law, daughter-in-law, brother, sister, half brother, half sister, stepbrother, stepsister, brother-in-law, sister-in-law, parent, stepfather, stepmother, father-in-law, mother-in-law, grandparent, and, if related by blood, aunt, uncle, niece, or nephew. Remember that a child whom you legally adopted is always considered to be your child. Also note that, for the purposes of this requirement, divorce or death does not change any relationship which was established by marriage (e.g. son-in-law, daughter-in-law, etc.)
3. Gross Income: The person must have made less than $4,000 in gross income during 2016.
4. Support: You must have provided more than half of the individual's total support during the year

Click this link for more additional information about claiming elderly parents as dependents