Does anyone know the answer to this tax question?

[Tuffcookie]

Alright, I'm already bummed because DS turned 17 in Dec so I can't get the additional child tax credit.

Now I have a question about multiple homes. Mom passed away in 2006. Her house is currently on the market. It is empty. Can I claim the utility bills and property taxes I spend on her property until it sells?

TC

 

[DVC-Don]

I'd say utility bills - no. Property taxes - maybe. Are you listed on the deed?

 

[brerrabbit]

If the house has gone through probate and you have it in your name, maybe. But only the property taxes paid for the period you have owned it. Otherwise no. The only way to deduct the rest would be if you declared it a rental property and then you would have to file those things as a business expense against any rental gains and show it all on the return as a business loss. You would alos have to prove if asked by the IRS that you were trying to rent it.

 

[Tuffcookie]

Deed is in my name. I suppose I will have to call the IRS to make sure.

TC

 

[PatsMom]

If the deed is in your name I'm pretty certain you can deduct property taxes just like you would for any second home. If part of the taxes were paid by your Mom's estate prior to transfer of the deed, you maybe only able to deduct part of the tax. But assuming the deed has been solely in your name for all of 2008 (which makes sense if your Mom died in 2006) you have a deduction.

 

[Tuffcookie]

Yea!!!

TC

 

[Cheshire Figment]

To give you a little more detail. As long as it is in your name the property tax is deductible.

The other is once it sells you will have a long-term capital gain or loss between the net selling price and the value of the house at the time title was transferred to you.

I would strongly suggest that when it finally sells that you have your taxes for that year done by a profressional; you may be very pleasantly surprised.

Mike (CPA Retired)

 

[Tuffcookie]

Thanks for the advice, Mike. I will certainly do that!

TC