I'll be putting in an offer on a home this afternoon. My boyfriend and I would be moving in and splitting the costs. My parents will be funding this by arranging for a private loan from them to me. One of their restrictions is that everything be under my name since we're not married (we're engaged, but planning a surprise wedding.) My assumption is that what we'd have to do is that I would claim all property taxes, mortgage interest payments, etc. on my taxes, and he would have to do his taxes as a ';renter.'; I would have to claim his half of the payments as rental income. Is this correct? To keep things fair, since I would end up coming out better on the tax front, I would be putting all of my refund money (including the 1st time home buyer credit) into improving the house, since it does need some work done. Luckily, we've known each other long enough and lived together long enough to know that neither of us would ever try to cheat the other- I have no worries that he'll pay his half, and he has no worries that, if the worst happens and we split, I wouldn't arrange for him to receive his half of the proceeds of the sale, so no advice needed on that aspect (my parents even felt bad about the clause and were afraid of offending us with their practicality :-p)How will tax laws, etc. affect my boyfriend and I when we buy a home in my name?
As a tenant, he has zero rights to any sales proceeds. You would be making him a taxable gift if the amount is more than $13,000.How will tax laws, etc. affect my boyfriend and I when we buy a home in my name?
I would not do this. Get married. I have seen too many relationships go sour such as yours. Too much money and not be married.
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