Thank you all for you answer, especially Corey. Your answer help me a lot. In order for me to determine how much I could afford, I was trying to get more information on whether I would lose a portion of tax deduction because of a co-ownership with a foreigner who doesn't live and file tax return in the U.S.

Fri Apr 18 2008, 18:45

Jackie you would be entitled to take the full tax deduction for the property taxes & mortgage interest paid becuase your sister a foreign national does not file a US tax return. I currently own a building with my brother in law and we split the deductions evenly. It does help if you use the same accountant. The decuctions can be split in any ration you choose but the total can not exceed the total paid in interest & taxes. Good luck.

Fri Apr 18 2008, 09:33

Hi Jackie. It is definitely best to speak with an accountant regarding this issue. With that being said, both of your names would have to be on the deed and mortgage and even then I believe you can claim only half each. You wouldn't both be able to claim the entire amounts...you cannot "double dip" the IRS - they will eventually catch up to you. Again, best to get expert advice from a tax expert. Good Luck

Gina Chirico
Prudential NJ Properties
973-228-1000 ext 132
GinaChirico@PruNewJersey.com

Thu Apr 17 2008, 18:34

The best thing to do is talk to an accountant, whoever helps you with your taxes. If you don't have one, give it a week and call one that perhaps someone you know can recommend (or your real estate lawyer). I say this because all the accountants are exhausted from getting through April 15th deadlines! You shouldn't lose the tax deductions but you may be able to take only half of them -- not sure. Good luck!

Thu Apr 17 2008, 18:23