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Dear Tax Talk,
My mother is a dependent on our tax return. She is unable to work and we pay all of her bills. Is it OK for us to
deduct her real estate taxes? The property is in her name.
-- David
Dear David,
While a family member may be your dependent, their income and expenses aren't necessarily yours.
The income of a dependent always remains his or her separate income and should never be declared by
you. (A child's income belongs to the child, but due to special rules, investment income of the child is taxed at
your rate to prevent income shifting.)
Expenses you pay for the maintenance or health of a dependent can be deductible by you as a moral
obligation. For example, an individual can receive a tax benefit for higher education expenses or medical expenses
of a dependent.
As you might have guessed, real estate taxes are not a moral obligation. Real estate taxes are only
deductible by the person legally responsible for paying the tax.
Because you are not title on the property, you cannot claim your mother's taxes as a deduction even
if paid from your funds. You may want to consider having your mother add you as an equitable owner of the property
so that you can deduct the taxes.
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