Back in 2016 a living trust was created where my uncle gifted me a property in Los Angeles. The property was really my mom's property but she had to buy it through my uncle due to personal problems. Initially I thought it was a good idea to agree to this since we had agreed that the property rightfully belonged to me and my uncle was tired of having to support the house, plus it was being rented out so there was money coming from that. My uncle pays the taxes for that year and I take over as the landlord in 2017. Up to this point it was all good but my mom convinces me that she needed the rent money (about 30k/yr) for herself to pay the insurance (1.2k/yr), property tax (about 9.1k/yr), repairs, and herself since she doesn't make much as a seamstress. I get promoted in my job in late 2017 and now I earn about 53k a year. Fast forward to January of 2018 and I have no idea how to file my taxes because I've only used TurboTax up to this point and I don't know how to file taxes for the house. I decide to find professional help and find a guy locally in the Bay Area and we communicate back and forth regarding the circumstances of the property, depreciation, rent, and all the other tax stuff and I wasn't expecting to get back much for that year but turns out I owed Uncle Sam $1056 and California $264. Not to mention I still had to pay the tax guy $475 dollars. The tax guy tells me that I should change my w4 to claim 0 (whereas before I only claimed myself) so that I owe less to the government for 2018. Fast forward to today I decide to do a little calculating using the a withholding calculator and discover that if I calculate my taxes taking into account my 401k, health insurance pretax, Roth IRA, federal withheld, my income, interest from my savings, and the rent money, I would owe 10k to Uncle Sam, 5k more than what I would be withholding. So I call my mom about maybe paying her share of the taxes since I don't see a penny of the 30k to begin with and she tells me that she's got to pay the property taxes and I rebut by saying that I would be paying the taxes on the rent. I tell her that this is a great burden to take on and that I could pay 7k total of the taxes for 2018 if she could at least pay 3k of it and she tells me that she gave me the house because it's my future and that I should take responsibility. Personally I think that's a bullshit excuse but I'm at a loss at what to do at this point.
Submitted April 13, 2018 at 02:26AM by throwaway17649 https://ift.tt/2HBjW81