benectar
I jointly own a property + mortgage with my parents and I am currently writing off the mortgage + interest in my 1040 because I am at a higher tax bracket.
I am considering purchasing a 3rd home. Is it more advantageous to
1) convert my 2nd home into rental property
or
2) let my parents pay for the expense and claim that on their 1040.
I am leaning towards the latter because if they sell it later at a gain, they don't have to report capital gain whereas for 1), I do.
Is that logic correct?
Thank you in advance.
I am considering purchasing a 3rd home. Is it more advantageous to
1) convert my 2nd home into rental property
or
2) let my parents pay for the expense and claim that on their 1040.
I am leaning towards the latter because if they sell it later at a gain, they don't have to report capital gain whereas for 1), I do.
Is that logic correct?
Thank you in advance.