Who gets the tax write-offs on a subject to? - Posted by Alison

Posted by Melissa-So. Calif. on July 24, 2001 at 20:49:54:

Thanks JB!!!

So many smart people here… I love this place!!! :O)

Melissa-ca

Who gets the tax write-offs on a subject to? - Posted by Alison

Posted by Alison on July 24, 2001 at 14:06:21:

Do the tax write-offs (e.g. mortgage interest and taxes) go to the person buying subject to or the person whose name is still on the mortgage?

Also, can someone recommend a great Subject To course?

Thanks

Re: Who gets the tax write-offs on a subject to? - Posted by Meliss

Posted by Meliss on July 24, 2001 at 19:29:41:

But if the mortgage companies DO NOT know that you are making the payments on the house, now, and the mortgage is still in the old owner’s name, Where do you get those tax documents that the mortgage companies usually sends out??? you know, the onles that you have to give to your tax prepairer (sp?)?

Melissa

Re: Who gets the tax write-offs on a subject to? - Posted by Bill Gatten

Posted by Bill Gatten on July 24, 2001 at 14:56:39:

The tax write-off goes to whomever has:

A contractual Obligation to pay the deductible amounts

The full risks and burdens of owenership

An equitable title interest in the property (or a beneficiary interest in a trust that holds the equitable title interest in the property).

IRC 163(h)3(A) and 163(h)4(D):US Master Tax Guide p. 2012, P. 1047

Bill Gatten

Re: Who gets the tax write-offs on a subject to? - Posted by Mike Schmidt (IL)

Posted by Mike Schmidt (IL) on July 24, 2001 at 14:18:29:

You have the deed, you own the property and you are making the payments so YOU get the write offs. Best to make sure the sellers understand they should no longer try and take the write offs so there is no confusion.

As for a course, I highly suggest Bronchicks Alt Real Estate Finance. It is not Subject To specific but it does cover Subject To and a TON of other invaluable information.

Re: Who gets the tax write-offs on a subject to? - Posted by JohnBoy

Posted by JohnBoy on July 24, 2001 at 19:54:36:

When you deed the property into a trust making yourself or your corp the trustee, you will have the lender mail all future correspondence to the trustee of the trust.

Also remember that when you take over subject to that you get the tax deductions, but if you sell the property on contract then your buyer would get the tax deductions.