Tax?

If you own a property in Pennsylvania, you may have tax obligations in Pennsylvania regardless of where you live. Property taxes are owed to the jurisdiction where the property is located, so you'll pay Pennsylvania property taxes on that home. If the property generates rental income, that income is taxable in Pennsylvania because it's sourced there. You'd file a Pennsylvania nonresident tax return reporting the rental income. You may also need to report it on your South Carolina return as part of your total income, but you'd get a credit for taxes paid to Pennsylvania to avoid being taxed twice on the same income. If your daughter is paying the mortgage, the arrangement matters for tax purposes. If she's paying rent to live there, that's rental income to you. If she's paying the mortgage as a gift or family arrangement with no formal lease, it gets murkier. A CPA who handles multi-state tax situations can sort out the specifics and make sure you're filing correctly in both states.

Which tax are you referring to? Keith Jean-Pierre Managing Principal The Dapper Agents Operations In: NY, NJ, FL & CA

You need to be careful here. If the house is in your name, you’re still the owner, even if your daughter is the one paying the mortgage. That doesn’t automatically mean you “claim” the mortgage payments as income, but it can affect taxes depending on whether she lives there, pays you rent, or is basically helping you cover the loan. If she’s just helping family and you’re not charging rent, that’s different from it being a rental property. If you’re collecting rent from her or anyone else, then yes, that may need to be reported as rental income, and you may also be able to deduct certain expenses. The bigger issue is ownership, deductions, and who is legally allowed to claim mortgage interest or property taxes. Usually, the person who owns the home and is legally responsible for the loan is the one who may be able to claim those deductions, but the details matter. I’d talk to a tax professional before filing, especially because you live in South Carolina and the property is in Pennsylvania. Don’t guess on this one. A 10-minute tax conversation could save you a headache later.

Real estate taxes touch a transaction from multiple angles -- property taxes, capital gains, and transfer taxes are all worth understanding before you buy or sell. In Florida, homestead exemption reduces assessed value for primary residences by up to $50,000 and the Save Our Homes cap limits annual assessment increases to 3% -- a significant long-term benefit that does not exist in every state. Capital gains on a primary residence sale are excluded up to $250,000 for single filers and $500,000 for married couples filing jointly, provided you have lived in the home two of the last five years. Always consult a CPA or tax professional before closing -- the timing of a sale, how you hold title, and your residency status all affect your tax outcome. Understanding these rules before you list or make an offer puts you in a much stronger financial position. -- Kevin Neely & Kaitlynd Robbins | K2 Sells

You will need to talk to your CPA who prepares your taxes.

The best person to answer that question is your accountant or tax preparer.