Subto And Tax Time.
I got a property in May under SubTo. What happens during tax time.
Does the old owner have the whole year to use mortgage payment as a tax writeoff? Or just from Jan-May as I would suspect?
I do have a mortgage calulator on my computer that is handling the tax info already, but I just wanted to make sure all my bases are covered.
Joel,
You claim the interest from when you started making payments.
John $Cash$ Locke
That is what I figured, but the "how to prove" is what I am worried about.
I have all the documentation, but I won't be able to get a statement from the Mortgage Company as it is going to the old owner for the whole year.
I guess I would have to have my accountant break it down.
Are you not using a Loan Servicing Co.?
If you were they should be issuing you with the tax statements for the mortgage payments.
Ladybug
As long as you have a paper trail to prove you are the rightful owner the IRS will be happy. The deed and the 1098 will suffice. The seller should have given you a letter to allow you to conduct business with the lender so you will be receiving the proper information. Copy the seller in on the prorated mtg interest that he can deduct. Good luck.