My question involves real estate located in the State of: California
Here is the situation. My in-laws purchased a home for my wife and I back in 2010. They live in their own home and my wife and I live in the currently purchased home. The title was under the in-laws name as well as the mortgage. We added our name onto the title in 2011 so now my in-laws name and our names are on the title. Mortgage is still under the in-laws name. We have been claiming the mortgage interest deduction on our taxes since we added our name to the title. CPA said we can do this as long as only one party claims the mortgage interest. In-laws only claim mortgage interest and property tax from their own house. The mortgage and property taxes are being paid by us straight from our bank account to the lender.
Question: Will there be any tax problems later down the road for in-laws or us if we continue with this arrangement.
I know there are ways around some tax laws and I believe we are correct on what we have been doing. Please confirm because I don't want any surprises later on. thank you all for your help.
Here is the situation. My in-laws purchased a home for my wife and I back in 2010. They live in their own home and my wife and I live in the currently purchased home. The title was under the in-laws name as well as the mortgage. We added our name onto the title in 2011 so now my in-laws name and our names are on the title. Mortgage is still under the in-laws name. We have been claiming the mortgage interest deduction on our taxes since we added our name to the title. CPA said we can do this as long as only one party claims the mortgage interest. In-laws only claim mortgage interest and property tax from their own house. The mortgage and property taxes are being paid by us straight from our bank account to the lender.
Question: Will there be any tax problems later down the road for in-laws or us if we continue with this arrangement.
I know there are ways around some tax laws and I believe we are correct on what we have been doing. Please confirm because I don't want any surprises later on. thank you all for your help.
Co-Ownership: Mortgage Interest Deduction
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