Property tax refund question for state of Minnesota?
I’m listed as a co-buyer on a house that my parents bought for me to live in during college. This year when my dad did my taxes, he listed the house under my name and I just got a check for 8 for property tax refund? In the past couple years my dad has filed the house under his name and has never gotten a property tax refund. But this year he listed it under my name and I think I received the refund because I only made like 11,000 last year. Now my dad thinks the money is his..but I think it is mine because we got the check probably because of my low income. Who should the money go to?
2 Responses
Byrne H
09 Feb 2010
carsonkip
09 Feb 2010
If you make the payments then you pay the taxes so it’s your refund, however, if you would have done your own taxes or payed someone to do them, you might not have filed a M1PR and you wouldn’t be asking this question. I say give your dad money for doing your taxes for you about $220 is fair for a 1040 and a M1PR.
I would be careful about this one. If the IRS sees that ownership changed without money changing hands, and the result was a tax benefit, they might think you were doing something unethical. There isn’t any specific reason that either one of you should be entitled to the $648. I mean, you’re living in a house because of them, so presumably that money is a tiny fraction of the total benefit you get from this transaction. On the other hand, if they can afford to let you live in a house but can’t afford to miss a few hundred dollars they didn’t even see coming, something else is up.
I would recommend that you agree to some split that will apply to this tax payment and all future tax payments from the house. You don’t want to have this argument every year.