May
Since returning full-time to college, my family - mostly my brother - has paid for all my bills, including my mortgage! This is going to be the case for 2 more years. Since I don't work, I can't take advantage of the itemized deductions, and I thought that it is a waste. Since my brother is financing it anyway, I was wondering if there was a way to transfer the house into his name so he could take advantage of the tax breaks. Any advice would be appreciated! Is this a good idea? Is it legal? Who could, or should, I discuss this with (a financial advisor, tax advisor, realtor)?
Answer:
You don't have to transfer the home over to his name, you can put him in the deed of the house and most definetly he needs to be in the loan otherwise he will not benefit from the tax deduction of the interest. The lean holder is the person who gets to take the deduction.
Answer:
If you put it in your brother' name, you end up with NOTHING! DUH! Your brother made a good jesture in paying your bills. That's nice. Pay him back in return, when you can. If he were a decent person, he will refuse the land. That's downriught STUPID!
He wants to see you prosper. That's why he helped you. Keep driving onward, and PUSH! You’ll get there AND pay him back.
Answer:
You can add his name to the deed. You’ll not be able to add his name to your mortgage but I think having his name on the title will be enough to make the interest deductible by him. Don't take your name off the title, however. And you will have to file a gift tax return if half of your equity in your home is over $12000.
Your brother would only be able to deduct interest on a mortgage in the amount of $100,000 or less since this would be a second home to him, not a primary residence (unless he lives with you). He does need to check with his tax advisor as this area of the law is very complex.
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