You are entitled to the interest and taxes paid deduction
after the date you became the legal owner of the home. Your
sister did sell the home for the mortgage payoff amount and
needs to report the sale. Depreciation recapture could
result in a gain on the sale.

Don in Colorado

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

In 2003 my mother and sister helped me buy a house. My
mother helped with down payment and my sister took out a
home loan in her name. We lived in the house and payed the
mortgage like it was our house and in 2003 and 2004 my
sister took the tax writes offs for it being a rental
property.

In July of 2005 we refinanced the house to take out some
equity for home improvements and to put the mortgage in my
name. We filed a quit claim on the property to put my name
on the title/deed and remove hers.

My question is how does this effect us this tax year? Do I
get to write off the interest and properties taxes since I
got all the tax information from the mortgage company in my
name this year?

What happens to my sister since she didn't actually sell the
house and there was no loss or profit on her part?

Any input would be appreciated.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >