With a “subject to contract” and a quit claim deed, who gets to deduct the interest of the primary mortgage note when you file your tax return?
A tax deduction for the mortage payment will not help your taxes if you rent out the property. It will only off set the income from the rent or what ever you call the payment to you from owning the property. Title companies here in Austin do not care for Quit claim deeds but prefer at least special warranty or general warranty deeds.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
zcortez,
The gist of Ted’s post is correct, but in case it wasn’t clear, here’s another explanation.
In most situations whoever pays the taxes and interest is entitled to the deductions. As Ted said, this is somewhat of an offset against income if held as a keeper.
I’d also suggest a General Warranty Deed and not a Quit Claim Deed.
On my deals I usually send the prior owners their pro-rata numbers for interest and taxes during the year of sale.
Just wondering. Any particular reason for Title companies in Austin preferring something other than Quit Claim Deeds?
Dee Dee,
John did a pretty good job of explaining the differences between the two and hopefully, it will be clear after that.
http://www.texasrealestateclub.com/forums/phpBB2/viewtopic.php?t=463&highlight=
Thanks.