Tax deduction for Parental Care (Second Home) Hello,
I am married with one child (2 Years old) and we have a "marital home" in my wife's name that we just bought three years ago on a 30 year mortgage. We also have a second house that I bought in 2009 before I met my wife, so this house is in my name and is also on a 30 year mortgage.
Before I met my wife, I used to live in the older house and my mother stayed with me. Once we bought the second house, I moved in with my wife and let my mother stay in the first house. I pay all her expenses (utilities, internet, yardwork etc. etc.) and also give her $500 a month for her personal expenses. I also pay the monthly installment for her car. She has no income as she does not work.
My question is, can I take any tax benefits from this situation? I would like to, if possible, use mortgage interest credit on the second house... but I think it is considered an investment house, so I can't do that... is this correct?
Secondly, I used to be able to claim my mother as my dependent when I was single. Can I still do that as a married couple? By the way, she did not have health insurance until June of last year, so there is that question of penalty for not having health insurance as well.
Thanks for reading my long winded question.
Russ |