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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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When my father passed away in May 2008, I inherited his townhome.

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When my father passed away in May 2008, I inherited his townhome. Before he died, he had my name added to the Warranty Deed and title on the property as a joint tenant with right of survivorship. He also added my name to the home mortgage loan. However, the bank is telling me that since my father's soc sec number is XXXXX only soc sec number listed on the loan, I do not qualify to take the tax deduction on the interest paid on the home loan for year 2008. Is this true? Please advise.

This is not true. If you are the beneficial owner of the property than you can qualify to take the tax deduction for the interest paid on the home loan.

 

 

Pursuant to IRS Regulation Section 1.163-1(b) you are allowed to deduct otherwise deductible interest you pay on a loan secured by a mortgage on property you own even if your are not otherwise liable on the note.

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

 

 

RD and other Tax Specialists are ready to help you
Customer: replied 8 years ago.
But the 1099 issued by the bank on interest payments made in 2008 only shows my father's name and social security number on it. How do I submit this 1099 form without triggering an IRS audit or inquiry? Should I submit a certified death certificate and copy of the monthly mortgage statement? Will this be enough? Or should I submit additional information?

You do not have to submit any other documentation with the tax return. You can keep it in your tax file. Since you are on the title of the property, the deduction is a valid one. It will not trigger an audit or inquiry.

 

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.