Tax Questions for CPA, IRS Employee or Accountant Please. Re: Mortgage and Car

Updated on September 06, 2011
B.S. asks from Spring, TX
5 answers

We recently bought our first home. My father who is disabled lives with me, my husband and our son. One of the credit reporting agencies had my credit report messed up and it wouldn't be fixed in time to purchase our home so the house is being purchased by my father and husband--both of them are on the mortgage and they both own 50%. Who claims the mortgage when tax time comes? Do my husband and I since my father is on disability and doesn't even have to file taxes? We don't claim him as a dependent since he is on disability.

My second question is, if we are making payments on a used vehicle and it's main purpose is to transport myself and my father (we are both disabled) to doctor appointments, can the payments or interest on this vehicle be claimed as well?

Also, since I am disabled, I am not able to totally care for my almost 4 year old son all the time. I have him in Mother's Day Out which lets me get the extra sleep I need, get doctor appointments and procedures done...etc. I don't know what I would do without MDO. Are we allowed to claim the child care tax credit? My understanding is that you can only claim this if you have to have child care to work...but we do. If my son wasn't in Mother's Day Out, my husband would have to miss a lot of work.

I would have never thought of the vehicle or child care but one of my friends suggested it to me and I'm not sure she knows what she is talking about. I am hoping to get some help here just for an idea. We do plan on having an accountant do our taxes this year since there is just too much that we aren't sure about.

Thank you for your time.

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So What Happened?

Thank you for all the polite people responding. For Jo W.--it never seems to amaze me the a$$es on this site--if you don't want to answer then don't. Don't be rude about it. As I said in my original post, I plan on getting a CPA to do our taxes. I just wanted to get a feel for what all I needed to get together and what to expect.

More Answers

C.O.

answers from Washington DC on

You can actually call the IRS with these questions and they will answer them for you and tell you what forms you need, who you can claim - what you can and cannot claim...that will help you more than here - because it's coming straight from the horses mouth...

I do know that you are not allowed to claim car payments or interest on your taxes...it's MILEAGE - keep a log of the odometer reading and date of each dr trip...then if you ever get audited, you will have back up- not just a guesstimate of the mileage!!

If your father is not filing taxes - even on disability - I don't think he can claim mortgage points or the interest write off....so really - call the IRS...go to:

http://www.irs.gov - you will get phone numbers to call and the forms you need......and if things are that complicated - you might benefit by paying a tax accountant to do your taxes for you...then you are covered that way as well..

GOOD LUCK!!!

5 moms found this helpful

C.C.

answers from San Francisco on

In my experience, all child care is deductible up to a certain dollar amount (around $2500 per child per year). Since your husband works and you are disabled, MDO fees should be deductible. There are some conditions to it (you can't make over a certain dollar amount per year, but the limit for that is fairly high, like around $100K+). Your best bet is to make an appointment with a CPA though, because you do have some fairly complicated circumstances which may even qualify you for additional tax breaks.

1 mom found this helpful
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D.N.

answers from Chicago on

We own a building 50/50 with someone else. We claim the percent of interest and taxes that we pay and he claims what he pays. Since my husband and I have been paying 65% of each, we claim that amount. We also have annual letters written up--no lawyer necessary--just in case anything comes up indicating that this person paid this much of the total for both and copies of the 1099s (?) are attached to that. We have never had a problem. For the child care, you should not have a problem claiming for child care tax since one of you does work.

1 mom found this helpful
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A.G.

answers from Albuquerque on

I can help you part of your question. I know you cant claim your car payment or interest, but you can count all mileage to & from all drs appts. & procedures.
Check with your state, I know here in NM the state tax office has an 800 that can answer questions and they also provide free tax help to people who need it. Good luck, taxes are confusing.

1 mom found this helpful

J.W.

answers from St. Louis on

Ya know you are soooo not worth my time. Go right ahead and change your post. I am quite done with this.

1 mom found this helpful
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