One of my client bought real estate property in another state and she doesn't live there. Her sister lives there. So how do you prepare that? The 1098 property address is different from filling address. This is the first time I've experienced with that. Please help.
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You need to provide more information. Is the sister renting the house. If she is, is she paying the full rent or FMV.Originally posted by helptax View Post
It can also be considered a 2nd home.
It does not matter what State the house is in.Everybody should pay his income tax with a smile. I tried it, but they wanted cash -
See IRS Pub 527.If rented at FMV it is a retal property for profit and is treated like any rental unit. If you client is renting below FMV rent, the rental in considered not for profit and you can deduct the expenses up to the amount of rents received.Comment
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Hi Brian, FMV is it stand for fair market value? Her sister is helping the mortgage and she will not claim the house. Only my client will claim the mortgage interest. On the 1098 form, both of their names on it with the sister's SSN. And correction, the propert is look like condominum because there is apt no. on it. Can my client claim the whole mortgage interest under her name? I don't think this property consider rental property. Is it true?Comment
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The property is under both names. Therefore they can split the interest and tax payments any which way they can or any one of them can claim all the interest and taxes.Originally posted by helptax View Post
It is not a rental
brianEverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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