Can a family member live in our second home and pay expenses?

Forum|Forum|6 years ago
June 7, 2019
1 reply
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If my mother lives in our second home as her primary residence, can she pay the home's expenses (utilities, association fee, and contribute toward the mortgage payment), without those payments being considered "rental income" for me?

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Hal_Al

Employee

Yes. You have no rental activity to report.

You may continue to deduct real estate taxes and mortgage interest, on schedule A (itemized deductions), for your 2nd home.

Carl11_2

Employee

In other words, it doesn't change the fact that it's still a 2nd home. But do understand that the only one who can deduct the mortgage interest and property taxes, is the one who is legally obligated to pay them. Who actually pays them, doesn't matter. Only the one legally obligated to pay those things, can claim them.

step07726

Best to do in that case is have a joint checking account. Even if you never deposited a penny into the account it is still part your mone y legally. So you can cliam the deductions legally.