Posted by John K Haslach, CPA, MST on November 16, 2004 at 09:13:24:
They would be specially allocated to you on your K-1 from the partnership. Keep in mind the IRS has rules on how income, gain, expense and loss are allocated and they can reallocate. It would be a very good idea to speak with someone who is very comfortable with these rules.
Tax deductions - Posted by Mitch
Posted by Mitch on November 15, 2004 at 16:11:53:
Hello,
i have a few questions regarding taxes that i hope someone can help me with. I’ve just helped my brother and father buy homes. Under our agreement, i am entitled to all tax benifits on the property because i gave them the money for the down payment. my question is how can i get credit for the depreciation, closing costs, state tax, and interest, etc. on the properties?
thanksm
Re: Tax deductions - Posted by Diane (TX)
Posted by Diane (TX) on November 18, 2004 at 23:05:47:
You would take the deuctions on a Schedule E. If it’s a formal partnership, put it under the partnership section; if not, show it as a rental.
Depreciation: Are you holding this for rental income or for investment? If for rental, claim deprecaition on your percentage of ownership times the basis. If not for rental, you don’t qualify for depreciation. That’s for business or rental property.
Closing costs - not deductible unless for points for a personal residence. Add to your cost basis and reduce your capital gains when sold.
Interest - To be deductible, the interest must be on your debt and paid by you.