| If you own a home jointly with someone else it can be | | | | If you file separately from the other home owner, than |
| hard at tax time to figure out who gets the deductions. | | | | you must claim the portion of the deductions that you |
| Consulting a professional is always the best thing to do | | | | pay for, and only the ones you pay for. |
| for any areas that are grey. For a few quick tax tips | | | | In a tenants in common scenario, your tax deductions |
| for joint home ownership, read on. | | | | must be deducted according to the percentage of |
| Determining What Type of Joint Ownership You Have | | | | ownership you hold. |
| First it is important to know what kind of joint | | | | Another great tax tip for joint home ownership that |
| ownership you have entered into. In a "joint tenants | | | | applies to couples is this; allow the person with the |
| with right of survivorship" (JTWROS) each owner is | | | | greater net income to make higher payments towards |
| considered to have 100% ownership of the property. In | | | | the home. This allows them to take the entire |
| this situation, if one tenant passes away, the other | | | | deduction and results in improving the benefits from |
| remains to own the entire property with only having to | | | | the tax exemption on principle and interest repaid. |
| remove the name of the deceased from the deed. In | | | | Having one partner pay significantly more or all of the |
| a "tenants in common" (TIC) situation, each person is | | | | payment towards the home can be easily offset by |
| considered to own a certain percentage of the home | | | | having the other partner be exclusively responsible for |
| laid out at the time of purchase. This is usually a 50/50 | | | | other bills in the home. |
| situation, but not always since the percentages are | | | | Bonus Tax Tip |
| determined by how much each contributes at the time | | | | To get incredible savings at tax time, a lot of people |
| of purchase. When one tenant passes away, their | | | | start their own small home business. Something such |
| share of the property goes to whomever they have | | | | as an online business that you work at a few hours |
| left it to, and all the benefits along with it. Also, one | | | | per week can not only bring in a considerable amount |
| tenant may sell their share of the property without the | | | | of extra income, but can also provide you with huge |
| approval of the other. | | | | tax write offs. When you run any kind of business out |
| Tax Tips For Joint Home Ownership | | | | of your home you can write off a portion of your |
| For tax purposes, if you are a joint tenant with right of | | | | mortgage, property tax and utility bills. If you run an |
| survivorship than the tax deductible expenses must be | | | | online business, you can write off your internet, |
| claimed by the person who actually pays them. | | | | computer costs and any office furniture you may |
| For married couples filing jointly, you just deduct the | | | | need. This adds up to huge savings at tax time, not to |
| mortgage interest from your total combined income. | | | | mention extra income for a rainy day! |