How would you deal with this on your taxes?
My parents (using their credit) purchased a home for my stepbrother to live in. My parents make the payments for the loan, insurance, and real estate taxes. Then my stepbrother pays them back for this amount.
So what should my parents do on there tax returns.
Thanks for any information.
They can deduct the real estate tax in any event.
Finally, if the amount that SB pays them is fair market rent, they can treat this as a rental on Schedule E, and take depreciation and other rental expenses.
He owns three houses including this one. I think he would rather treat the whole thing as a wash but he is worried that what he received from my SB is income. Is this true?
Michael Giambri wrote: ...
Strictly speaking, yes. If he's going to itemize and deduct any expenses, he needs to treat it as was suggested as a rental property. I'd suggest ask someone local w/ more details provided to ensure most advantageous route.
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