Posted on: 18th Feb, 2011 03:44 am
I am financing a second house, although my boyfriend is actually paying the 20% down and will pay at least 50% of the home. He was made redundant so the mortgage is going to be just in my name. What about title etc. Should he be on there. Are there any tax implications for putting him on etc? What does this mean legally down the line. Thanks
if your boyfriend is on title, he is an owner.
if he is not on the mortgage, he is an owner who is not responsible for paying the mortgage
if i was your boyfriend, i would want to be on title to protect my interests/invetsment since i am putting money for down payment and because i would be paying monthly, even though not required to do so. if not on title, you could sell the house without his permission and not be required to give him any of the proceeds of the sale.
if he is not on title, you can sell the house or refinance without his permission.
if he is on title, you need his ok and signature to refinance or sell.
if he is not on the mortgage, he is an owner who is not responsible for paying the mortgage
if i was your boyfriend, i would want to be on title to protect my interests/invetsment since i am putting money for down payment and because i would be paying monthly, even though not required to do so. if not on title, you could sell the house without his permission and not be required to give him any of the proceeds of the sale.
if he is not on title, you can sell the house or refinance without his permission.
if he is on title, you need his ok and signature to refinance or sell.
If he is on it though, will it affect his taxes at the end of the year? What happens if worst case something catastrophic happens and I go into foreclosure etc how will that affect him if he is on the title? Thanks so much.
He is on title.
He is an owner.
If he pays the taxes on the property, he could deduct the taxes on his tax return because he is an owner.
He is not on the mortgage. If he makes part or all of mortgage payments, he can not deduct the interest paid on the mortgage because he is not responsible to pay the mortgage.
In event of foreclosure, he loses the house. He is not responsible for any of the mortgage payments and not responsible for any part of the mortgage balance.
Some of above requires an accountant to confirm or correct what I am saying. I am not an accountant. Just stating what I believe to be correct.,
He is an owner.
If he pays the taxes on the property, he could deduct the taxes on his tax return because he is an owner.
He is not on the mortgage. If he makes part or all of mortgage payments, he can not deduct the interest paid on the mortgage because he is not responsible to pay the mortgage.
In event of foreclosure, he loses the house. He is not responsible for any of the mortgage payments and not responsible for any part of the mortgage balance.
Some of above requires an accountant to confirm or correct what I am saying. I am not an accountant. Just stating what I believe to be correct.,
John, I'll concur with what you've written here. I agree that there's a need for a tax advisor to get involved as well, but I don't think you missed anything in your analysis.
