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Tax time


When we refinanced the house at the end of 2003, Barb and I were still
together. We did the refinance with the mortgage in her name because we
got a better rate than we could do with my name.
This past year, we broke up. I moved to Des Moines and got an apartment
because I am working a contract job that requires me to be on-site. I've
been making house payments and rent payments, paying utilities on both
places, etc.
Comes time to do taxes, and I discover that because the mortgage is in
her name, I can't deduct the mortgage interest that I've been
paying, which is a pretty significant chunk of change.
Nor can I deduct the rent and hotel bills that I've chalked up since
I've been down here, because I wasn't actually doing any work there.
Those two things are the significant financial suck that I've had, and
not being able to take deductions on either one of those is making a
major dent in my ways-I-can-pay-less-taxes.

The next biggest category is the expensive home repair stuff. Since
technically I don't own the home, it also goes by the wayside.

Now here's the question:
I have a home office established for my business. Since the house is not
my primary residence, can the house payments that I've been making and
the repairs be considered rent? And would that not be a considerable
business expense?

I am fully W-9, and an independent contractor.

Man, I hate this.

Comments

( 4 comments — Leave a comment )
purplesquirrel
Feb. 25th, 2005 08:38 pm (UTC)
Talk to a CPA. If you can prove that you in fact paid the mortgage, then it is probably illegal for someone else to deduct that interest.

The home office argument seems like a good approach.
magicmarmot
Feb. 25th, 2005 10:04 pm (UTC)
Well there is some good news/bad news stuff.

First, since the mortgage was paid from a joint account, there is no way that I can prove that I solely paid it. I can take the home office deduction as before though, so that is something.

However, it looks like I can deduct the hotel and apartment under schedule C.
gingerpook
Feb. 26th, 2005 04:15 am (UTC)
But, since the mortgage was paid from a joint account, would Barb be willing to claim that expense and give you the money?

It might be worth asking...
magicmarmot
Feb. 26th, 2005 03:00 pm (UTC)
Nope. She's claiming the expense and keeping it. Thats why I was looking into the rent thing.
( 4 comments — Leave a comment )

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