afraid not, it's under my name. I've heard from a tax preparer that my parent can claim the property since they've been paying taxes and expenses and collecting rental income... not sure if the irs is ok with that. I rather not have to claim the property personally.
I asked two CPA's earlier today. CPA 1. Income shifting, illegal. CPA 2. Asianballa claims the deductions, reports on tax return, gifts profit to parents. Imo, hire a tax consultant and tell them what you want done and have them figure it out.
Very complicated answer. Different auditors could give different answers. If you want your parents to claim the income and expenses, and be totally responsible, I recommend having a written agreement requiring your parents to make the payments and all other costs related to their property. Consider filing the agreement with the Superior Court. Sort of like a wrap around mortgage. Also consider quit claiming their names onto the security deed. I have no issue with your parents claiming the rent and expenses, my only real question is regarding the depreciation, since they don't own the property. You are the one technically benefitting from the principal payments. I would consider reporting those principal payments as income, and deducting the depreciation on your return, and your parents reporting the principal payments as an other expense on their personal return. You could also put the property in an LLC, and have the partnership agreement report all profits and losses go to your parents.
Seems pretty cut and dried...since your parents deal with the house as a rental and I assume pay all expenses (mortgage, taxes, etc) and receive all the rent, they are the entity that is the "equitable" owner of the house, thus they get the deduction and claim the rental income/expenditures. If I understand things correctly, your only contribution is having your name on the mortgage.
Bump. Looking to do my own tax return. Only complication would be execution of stock transactions. What software or website would you guys recommend?
