近距离内射合集

Q: My brother and I are interested in buying a vacation home at a lake. Our families often travel together, and the kids are close in age, so we are interested in splitting the cost of the property. We have found a nice home that is listed for $650,000. If we were each to own half of this home, how do we treat the tax deduction for mortgage interest and property taxes?

First, mortgage interest is deductible for your principal residence and one other residence.

A residence is defined by personal use, so if there will be no rental of this home, it would qualify for a second residence for each of you.

Mortgage interest deductions are limited to interest on a $750,000 loan. This limit will apply to the loan on your principal residence and the vacation home.

So, first make sure that neither one of you will exceed the overall $750,000 limit on qualified residence debt.

If you split this property equally, only half of the loan would count against the overall $750,000 limit.

To deduct interest, it is best to be liable on the loan. You would each deduct the amount that you paid on the loan.

If this is structured so that only one of you is liable for the loan, it is still possible to deduct the interest that you pay.

If you are a legal owner of the property, you can deduct the interest that you actually pay even if you are not liable for the debt.

If only one of you gets a Form 1098 from the lender reporting the interest, but you each make payments on the loan, you can still deduct the interest you paid.

In that case, the owner with the 1098 form reports his share of the interest on line 8a of IRS Schedule A.

The other owner reports his interest deduction on line 8b of Schedule A, and he should also list the person who received the Form 1098 on that line.

This means that you can each deduct the interest that you paid, provided you itemize deductions and do not exceed the overall $750,000 limit.

The property taxes are slightly different. You cannot deduct property taxes unless you are an owner of the property.

This is so because property taxes are assessed against the owner, and the tax law requires that the deduction be claimed by the party who must pay the tax.

If you each have an undivided one-half ownership share in the property, then you can each claim a deduction for the property taxes that you actually pay.

The property tax deduction is also on Schedule A, so you cannot benefit unless you itemize deductions for the year.

Q: My father owns land that he purchased in 1977 for maybe $20,000. We believe the land is now worth at least $400,000. He wants to give me the property now. Can you confirm that if I get the property by gift, I will have to pay tax on a large gain when I sell? Dad is 87, and I told him it is better for him to leave me the property after he is gone. I think I would then avoid any tax on a sale. Is this right?

You are correct. If you receive the property by gift, your tax basis, used to measure a future gain or loss on sale, is the same as your father鈥檚.

If you receive the property by inheritance, your tax basis is the fair market value at the date of gift.

So, your tax position would generally be better if you inherited this property rather than received it by gift.

You did not mention your mother. If she passed away when married to your father, his tax basis would be adjusted by her death.

If the land were held as community property, the tax basis would be adjusted to the fair market value at her death.

I mention this because your father鈥檚 tax basis may be more than the $20,000 that he paid for the property 50 years ago.

If the tax basis is close to the $400,000 value, it may be best to just accept the property by gift.

Jim Hamill is the director of tax practice at Reynolds, Hix & Co. in Albuquerque. He can be reached at jimhamill@rhcocpa.com.