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What could be the impact of owning joint property with ex-husband?

What could be the impact of owning joint property with ex-husband?

Q: What are the disadvantages of claiming a parent as dependent?

Claiming a parent as a dependent can limit your ability to claim certain tax credits or deductions. Additionally, if your parent has significant income or assets, it may disqualify you from claiming them as a dependent. Furthermore, if you are not careful with the IRS requirements, you could face penalties or audits.

Q: How much can a dependent make and still be claimed?

For tax year 2023, a dependent can earn up to $4,400 in gross income without affecting your ability to claim them. If their income exceeds this amount, they may need to file their own tax return, which could impact your eligibility to claim them as a dependent. Always check the IRS guidelines for the most current limits.

Full question:

Our daughter,and ex-son-in-law have 5 rental units in both their names, LLC, including a loan of $8,000, he is not trustworthy. My question-if she were to buy a home, and something would come up regarding the apartments and loan, would her home be in any jeopardy with the joint ownership of the rental units and loan? We want her to buy a home, put it our name, she wants it in her name for the tax benefit, if he should get an idea of how he could have this taken away from her. We plan to give her money to help with the down payment and I just can't trust him.

Category: Real Property
Date: 04/07/2025
State: Ohio

Answer:

The answer will depend on how the names appear on any promissory notes for the mortgages on the rental units. If she and her ex-husband are jointly and severally liable for the debt and there is a default, the lenders may pursue collection from either individual or both. In most cases, a loan for purchase of a piece of real estate is secured by a mortgage which means the property is the collateral. The lender will take the property through foreclosure and sell it to satisfy the debt. If the proceeds from the sale aren't enough to pay the debt, the lender may pursue the borrowers for the deficiency. They can try to place ljudgment iens on other real property owned by the borrower.

All this obviously could affect the credit rating of the borrower and his or her ability to borrow funds for other reasons.

If the spouses have a divorce judgment or agreement, there may be provisions in there for who is responsible to pay the debts for the jointly held property. If one party defaults on their obligations pursuant to the divorce court's orders, the other spouse can pursue contempt actions in that court.

If the rental properties are owned by a LLC, creditors of the LLC must pursue claims against the LLC not the individual members of the LLC. It is important to make sure the debts really are owed solely by the LLC and not personally guaranteed by its members. If the members signed personal guarantees, they could be held liable for debts of the LLC. You'd want to examine those guarantees carefully to see if it requires one guarantor to responsible if the other defaults.

An ex-husband typically has no right or claim on any purchases made by a divorced woman after the divorce. Her main concern will be the ramifications of any unresolved or outstanding obligations that pre-date the divorce.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can I claim my parent as a dependent if she receives social security?

You may be able to claim your parent as a dependent if she meets certain criteria, even if she receives Social Security. To qualify, she must live with you for more than half the year, have a gross income below the IRS threshold, and you must provide more than half of her financial support. Check IRS guidelines for specific income limits and requirements to ensure eligibility.

How much do you get for claiming a parent as a dependent?

When you claim a parent as a dependent, you may qualify for a dependent exemption, which can reduce your taxable income. For tax year 2023, the exemption amount is $0 due to changes in tax law, but you may still benefit from credits like the Credit for Other Dependents, which can provide up to $500. Always check the latest IRS guidelines for updates.

What are the disadvantages of claiming a parent as dependent?

Can you get in trouble for claiming someone else's child on your taxes?

Yes, claiming someone else's child as a dependent on your taxes can lead to legal trouble, including penalties and audits. The IRS requires that you have the right to claim a dependent, which typically means the child must live with you and you must provide significant financial support. Always ensure you meet the IRS criteria before claiming a dependent.

How much can a dependent make and still be claimed?

How do I report rental income for a single member LLC?

To report rental income for a single-member LLC, you will typically use Schedule E (Supplemental Income and Loss) on your personal tax return (Form 1040). The income and expenses related to the rental property should be detailed on this form. Ensure you keep accurate records of all income and expenses to support your tax filings.