Discussion:House ownership and mortgage payment
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| Revision as of 01:53, 3 April 2008 Practitioner (Talk | contribs) (New Discussion) ← Previous diff |
Current revision Taxwizard (Talk | contribs) (A must be either) |
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| + | {{ForumReplyPost|UserID=Taxwizard|Date=3 April 2008|Text=A must be either an equitable owner or legal owner to deduct interest on a mortgage. He will be the legal owner in 2008. Not sure if he is the equitable owner -- we need additional info. See Reg. 1.163-1(b).}} | ||
Current revision
Discussion Forum Index --> Basic Tax Questions --> House ownership and mortgage payment
Discussion Forum Index --> Tax Questions --> House ownership and mortgage payment
Practitioner (talk|edits) said: | 3 April 2008 |
| My client A has a senior care facility (house) and pays the monthly mortgage and property tax for the facility owned by B. A's business started in 2007 and the house was purchased by B in 2007. B has legal title and plans to transfer title of the house via gift to A in 2008.
Is it acceptable for A to claim the house in 2007 in Sch C as an asset, depreciate, and report the interest as business expense versus A reporting rental expense and B as rental income. Please advise if you know of a revenue procedure covering this or encountered similar situations. Thank you. | |
| 3 April 2008 | |
| A must be either an equitable owner or legal owner to deduct interest on a mortgage. He will be the legal owner in 2008. Not sure if he is the equitable owner -- we need additional info. See Reg. 1.163-1(b). | |
