Have a Tax Question? Ask a Tax Expert
I am an Enrolled Agent and I have 9 years of professional tax experience.When you are asking about the rules, are you asking for something specific regarding taxes? I can tell you that you can depreciate the value of the property over time if it is a rental property. Any expenses are also deductible if you rent out the property.
If you plan on making it a rental property, your daughter must pay market rates or the IRS will not allow you to take any expenses against any revenue if you rent it for less than fair market value. Yet, you would still have to declare any income from her. The only thing that would be deductible is mortgage interest and property taxes.
Are there any other questions you specifically have about purchasing a property in Texas and how it may affect your taxes?
It does not matter how you make the payments that makes the determination as to how it would be classified. It is if you rent the property or not.The total amount you pay as a mortgage monthly is NOT deductible. What is deductible is the portion of your mortgage payments that is interest, just as it is for your current home. And, any taxes you pay property would also be deductible. If this is also a rental, you can also deduct any expenses, and depreciate the property over time. That is the major difference.
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