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I currently live with my mother, and the house is under her name.

However, I pay for the property tax (house paid off).

In regards to property tax reductions. If I will be continuously paying the property tax, will there be more tax deductions if I put the house completely under my name, versus doing a joint ownership?

Cloudy
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user
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2 Answers2

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Unintended Consequences - Yes, to T.M.’s addressing the tax issue. But. “Put the house under my name” implies a gift. Mom is gifting you the house. Along with its basis. Which means, when mom dies, you don’t get a stepped up basis, and potentially have a huge cap gain when you sell.

Funny story. In a nutshell, my sister now owns a house worth $800K with a $4000 basis due to 2 generations of such gifting. She will see that tax bill I’d hope to save you from.

JoeTaxpayer
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If you don't itemize and wouldn't gain any benefit from itemizing the whole property tax amount, then it doesn't matter how much of the property tax you could deduct since it wouldn't lower your taxes any. I'm assuming that you do, or could itemize.

The relevant instructions (Schedule A) and publications (pub 530) are pretty quiet on who gets to deduct property taxes in an unmarried joint owner situation. The best reference I could find that addresses the question was from 2010. It basically answers in the affirmative that if you could lose the house if all the property taxes aren't paid, then the tax meets the standard of being "imposed on you" stated in pub 530 and you can deduct the entire amount you paid. It gave an exception in Pennsylvania where due to state law the joint owner couldn't lose her 1/6th interest in the house as long as she paid 1/6th of the taxes so her deduction was limited to 1/6th of the taxes.

If you weren't a joint owner and paid the taxes you would not be able to deduct them at all per this question.

T. M.
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