Jaykid007
Mar 18, 2007, 07:49 PM
I have two clients who are partners. They each live in the same house, both on title, and both on the mortgage. Also, they have a rental property together.
One of the partners has two children and wants to file head of household with two dependents. The HOH requirement is that the taxpayer provide over 50% of the upkeep on the home. In this case, I would have to file the client HOH, but split the mortgage and RE taxes between them 50/50? And also do the rental 50/50 as well. The other partner that files single without the kids, wanted to take the whole tax deduction on the mortgage interest and taxes, but I was advising they don't do this and they do 50/50 because if they ever questioned the HOH, they would need to everything split, correct?
One of the partners has two children and wants to file head of household with two dependents. The HOH requirement is that the taxpayer provide over 50% of the upkeep on the home. In this case, I would have to file the client HOH, but split the mortgage and RE taxes between them 50/50? And also do the rental 50/50 as well. The other partner that files single without the kids, wanted to take the whole tax deduction on the mortgage interest and taxes, but I was advising they don't do this and they do 50/50 because if they ever questioned the HOH, they would need to everything split, correct?