My parents recently added me to the tile of their house. They live in California and I live in Virginia. I would like to but their house so I won't need to worry about them. My plan is to buy the house and let them live in it free of charge. (And I hope to take advantage on some tax deductions since I don't own any other real estate.) According to my lender, I can either purchase the property as my primary place of residence (thereby hopefull keeping their current real estate tax rate) or as a secondary residence (whereby the tax rate would readjust as if it were a new purchase).
A couple of questions: is it problemmatic to purchase a property as a PPOR when someone really lives in another state? How does that work for federal and state staxes? Will I file state taxes in California or continue to file them in Virginia?
Any insights would be welcome.
This forum is an Australian property forum as I know nothing about USA tax I can only suggest you contact
. the free help with your tax return at an IRS Taxpayer Assistance Center. You don’t need to call ahead.
To find the Taxpayer Assistance Center where you live, visit http://www.irs.gov/localcontacts/index.html. To get help by phone, call the IRS at 1-800-829-1040.
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