Buying home with child

bydbearlvr
bydbearlvr Member Posts: 1 Newcomer
in Situation & Life Changes

We are purchasing a home for our daughter while she finishes college. She will rent it from us and the plan is to have her purchase it from us when she will be a nurse in a couple years for the amount we bought it for. We will have a lease with her and have agreed with her that we will take the writeoffs until she can buy it. Our question, should we put her on the loan and deed with us at the purchase to get a better rate and avoid capital gains, then we could just quit claim to her and she could refinance to a loan without us? Are there any tax implications to do it one way or the other? We want to to what is best for us and her tax wise and we will have a written agreement in place either way that we claim the depreciation and expenses until she can qualify on her own.

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  • KristineS
    KristineS FreeTaxUSA Agent Posts: 177
    edited December 2

    Hello bydbearlvr,

    As to your question about the loan you'd like to get and perhaps include your daughter, with the eventual quit claim deed, these are legal questions best answered by an attorney, preferably one that specializes in real estate.

    As for renting the home out, you'll claim the rental income and associated expenses on Schedule E, Supplemental Income and Loss.

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  • Nannette_1
    Nannette_1 Member Posts: 1 Newcomer

    I don't have a comment but, I am having trouble posting a question.

    I to purchase a home this year and April 2024 and I wanted to know what part of the document will I enter in that information?

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  • CharlenN
    CharlenN FreeTaxUSA Agent Posts: 1 Newcomer

    Form 1040 (U.S. Individual Income Tax Return)

    • Schedule A (Itemized Deductions): If you itemize your deductions instead of taking the standard deduction, you can include:
      • Mortgage Interest: If you have a mortgage, you can deduct the interest paid on the loan. Your mortgage lender will send you a Form 1098 showing the amount of mortgage interest you’ve paid during the year. This report will show in Schedule A, Line 8a. In the software, go to Deductions/credit > Itemized Deductions > Homeowner Expenses (1098)> Mortgage Interest
      • Property Taxes: You can deduct the property taxes paid on your home. This is also reported on Schedule A, Line 5b (State and Local Taxes). In the software, go to Deductions/credit > Itemized Deductions > Homeowner Expenses (1098)> Property Taxes

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