On Mar 26, 6:48 pm, Bill Woessner <woess...[at]gmail.com> wrote:

- quote -

In addition to all the other excellent posts here, is it recommended
to file a fom 1065? It looks like a pretty formal business type form,
so I imagine it is not needed.

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"Bill Woessner" <woessner[at]gmail.com> wrote in message
news:4fcb36e8-240f-47c6-88b2-834bf6d727fa[at]z15g2000yqm.googlegroups.com...
- quote -

With that example, you each paid half of each item.

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Paul Thomas, CPA wrote:

- quote -

If I understand, the underlying economic reality doesn't have to change,
but if you do some extra record-keeping and calculating, the higher-AGI
taxpayer can arrange to claim the larger portion of the deductible
household costs, if there are enough other (non-deductible) costs paid
by the lower-AGI taxpayer to keep the overall contributions from each in
balance.

Records would include the ownership of the checking account which made
the payments to the bank, (and possibly where the money came from that
went into the account?) and accounting if necessary for gifts made to
each other in the form of household expenses. Might require filing a
gift tax form, usually with no actual gift tax ramifications now if ever.

-Mark Bole

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"Bill Woessner" <woessner[at]gmail.com> wrote in message
news:4fcb36e8-240f-47c6-88b2-834bf6d727fa[at]z15g2000yqm.googlegroups.com...
- quote -





You split the deductions 50/50. That is how you split the payments.




- quote -



Nope. Because you paid HALF of each payment, you can only deduct HALF of
the interest and taxes.

You don't get to pick and choose your deductions.




- quote -



It might to you, but it doesn't to the tax guy.



There are ways to make this work. Like you making the house payment and
your friend paying the groceries, utilities, and other expenses till you
feel it's even. Since you paid the mortgage in full, you get the full
expenses for property tax and interest.

That is a doable, and often used tax planning tool in situations like this,
or a hi-lo income couple filing MFS, or a host of other potential scenarios.






--
Paul Thomas, CPA
Watkinsville, Georgia

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On Mar 26, 10:51*pm, "D. Stussy" <s...[at]bde-arc.ampr.org> wrote:
- quote -

But how do you determine what you actually paid? Here's a breakdown
of a sample payment:

$714 interest
$216 principal
$69 PMI
$146 property taxes
$39 insurance
==========
$1184 total

But of that, only the interest, PMI and property taxes ($929 total)
are tax-deductible. So if I pay $592 and my friend pays $592, how do
we decided who paid what? For example, can we decide that ALL of my
half of the payment went toward interest? That's a better use of the
deduction since I'm in a higher tax bracket than my friend. Does this
make sense?

Thanks,
Bill

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Bill Woessner <woessner[at]gmail.com> wrote:

- quote -

One tax implication, if you do the deal as described, is that
you could trigger gift tax on the economic value that you are
transferring to her. You may not have to pay any current gift tax but
it will count against your lifetime credit if the economic value
is above the annual exclusion.

Steve

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"Bill Woessner" <woessner[at]gmail.com> wrote in message
news:b39e5ef0-a551-4556-8f37-efd17da226a8[at]c9g2000yqm.googlegroups.com...
- quote -

For interest, you get your main home plus one other.
For property taxes, you get all your property.

Therefore, it's not a matter of the rules. You each get to deduct what you
actually pay since you both owe it.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I just finished reading Pub 936 to try and get a grasp on this
situation. I'm just as confused as before. :-)

Simple story: I'm considering buying a house with a friend of mine.
We would both be on the mortgage and deed. It would be my second home
and her main home. I may stay in it a few days a year, but I
certainly wouldn't guarantee 14 (the threshold for a second home
rented out).

Simple question: What are the tax implications for me? Am I allowed
to deduct interest, property taxes and PMI as if it were my primary
home? If so, are there rules for how the deductions have to be
allocated between us? For example, suppose the payment is $1,200 /
month, of which $900 is tax-deductible. If we split the payment
50/50, do we HAVE to split the deduction 50/50? Or can we decide to
allocate it ourselves?

Thanks in advance,
Bill

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >