Could my wife and I claim different primary residences? We have two properties just down the street from each other, we have to support our respective mothers, but since they have no incomes, could she claim one as her primary and I claim the other as a primary?

Great question.  Having a home as a primary residence is only important if you selling the home.  I don’t think that is the situation?  You can deduct taxes on as many homes as you own.  Mortgage interest you can deduct on your primary residence and a second home.   I think that is your concern?  So the answer is sort of yes you can claim deductions for both houses.  If you are planning to sell one the question is a little more difficult if that is the case let me know. 

Your email brings up something more important, I think.  It sounds like both mothers are dependents.  Many times this comes up especially with clients who are of Asian decent, either they just don’t think of parents as someone who should be a dependent or they are worried the parent might not qualify for some type of government program.  Neither should be a concern in most cases they qualify as dependents and it will not affect medicare and similar programs.  Parents don’t have to live with you to qualify as a dependent. 

 

This blog is a collection of questions from clients and the answers.  The goal of the blog is not to answer the questions you might have.  Most times the answers are based on each client’s personal situation.  Please do not rely on this information to make important financial and tax decisions.  The advice presented here is presented to give examples of the type of information you get as a client of a true tax professional, like Ray Simmons and the preparers he employs.  Advice regarding similar issues for you should be based on your personal situation. 

 

Treasury Department Circular 230 Notice. “To ensure compliance with Treasury Department Circular 230, prospective clients are hereby notified that: any discussion of Federal Tax Issues contained or referenced to in this communication is not intended or written to be used and cannot be used by the prospective client or investor for the purpose of avoiding penalties that may be imposed on them under the Code.” Such discussion is written in connection with the promotion or marketing by Ray Simmons Corporation of the transactions or matters addressed in this correspondence.

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About taxdude8422

Basically I am just a tax nerd, have been all my life. However I have found the more open you are to opportunities the better off you will be in this world. That makes my what is know as an open networker on Linkedin, I will connect with anyone. I am not an expert on Linkedin by any means but one day when I was asking someone to connect I mentioned that I had just been refilled on invites. My new connect asked how I did that. I used that same line for the next month and got asked the same question four times. I started thinking there was a lot of little things it took my sometime to learn. Through this blog I plan to share some of those "Linked Secrets"
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