Neighbor News
Who gets the Condo Tax Deduction
Some unmarried taxpayers file separate returns. How do the mortgage and real estate tax payments get split up?
If you share a condo, town house or home with a friend, you both might split the tax write-offs for mortgage interest, mortgage insurance premiums and real estate taxes. If both of your incomes are similar this probably works out as the best tax strategy. Remember to include auto excise tax payments and don’t forget to include charitable donations when you get the thank letter.
If the incomes vary by a lot, the person with the larger income might want to itemize these allowed personal deductions and the person with the lower income would take a standard deduction. This is true if the person with the larger income had the responsibility for the mortgage and taxes.
Condo and town house owners are not allowed to deduct the condo management fees, but should find out what portion of the condo fee includes real estate tax for the common grounds and parking lot.
