Hello again halie,
Yes, that is what I understood you to say in your first post. And that is why there would be a problem with you deducting the interest and property taxes.
The only way that you are eligible to deduct mortgage interest and property taxes is if the interest and taxes are on your main home or a second home that you personally own. In other words, you cannot just take out a loan or co-sign for a loan on property where you are not also an owner, and still take these deductions
. You must be an owner of the property.
So if you wanted to take these deductions, you would have no choice but to add your name as an owner, which would then limit your daughter's credit to $4,000.
If you leave your name off of the deed then your daughter would qualify for the full $8,000 credit. But then in that case, since you would not be listed as an owner, you could not deduct the interest and taxes. So you really have to figure which way will end up being more beneficial for you, as you cannot take both the full $8,000 credit and deduct the interest and taxes.
Please refer to page 2 of the following IRS
publication in Part I for Mortgage Interest. It lists in that section the qualifications you must meet in order to deduct mortgage interest. One of those qualification is that "the mortgage is a secured debt in which you have an ownership interest".
Because of that requirement, you would have no choice but to add yourself the deed as an owner if you want to deduct the interest and the taxes on this home.
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Thank you again halie, and let me know if you still have more questions on this.