Originally Posted by
jacksonjan
... Neither of us will itemize, because we just don't have enough to make it more than the standard deduction. ...
At present. If there was a mortgage, that would change the amount you could deduct.
Originally Posted by
jacksonjan
... I will think about the contract. It seems a bit formal for us, because we are both honest and don't fight about finances. ...
If you want to keep it that way (no fighting), put it in writing. Written agreements are for honest people too. Hand-shake deals have a way of going sour because:
- people can forget what was said
- oral understandings tend to be one person understands one thing and the other person understands another
- there may be situations that come up which no one anticipated; and
- if one of the parties dies, it is difficult to impossible for others to know what was agreed to.
Originally Posted by
jacksonjan
... my mom gets mad when I bring up me getting a mortgage. She definitely wants to put me on the dee(both of us) I can see the sense in paying cash if she can, but she is using taking out CD early ($1,000) penalty. She keeps telling me "don't worry about it" In the long run I guess we will save in interest and closing cost, but I don't want her strapped for cash.
Consider giving her a mortgage for your half interest. That way there need not be any interest and closing costs, yet (depending on how it's structured), you may still qualify for the tax deduction.
If she wants to put you "on the deed" to avoid probate, there are other ways to structure the deal.