Hello and thank you for using Just Answer,To be allowed to use mortgage interest as a deduction, you need to have an ownership percentage in the property. If you or your spouse actually owns even half of the property then you would be allowed to claim the full amount of the mortgage interest you paid.To be deductible, the property tax must be imposed on you and must have been paid during your tax year. If you are not personally liable for the property taxes then you would not be allowed the deduction. They, too, must be on property that is owned.Unfortunately, your generosity is not going to assist you for deducting either.
Please let me know if you need clarification.
Your positive rating is always thanks enough.
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I didn't mean to imply that i was paying house payments and property taxes, because i am generous. I was making payments, because I am the one with bad credit. The bank set it up as a commercial loan to my father-in-law. So in a sense, we are paying rent, and also we pay the property taxes. Does this change your answer at all?
Unless you have an ownership interest in the property you would not be allowed to use the amounts (either of them) as a deduction. If you are not "renting" but have a contract to buy from your father-in-law then you may be allowed to claim the interest, biut this would require documentation that you are buying it from him and he would need to show the interest, himself as income.
He could of course use the interest paid under his name as a deduction.
Your situation requires that you could document ownership or buying the property not renting.
Would you be able to tell me it should be documented?
how it should be documented?
A contract between the parties that shows he is selling it to you.
Any old contract, or is there a special name or something to that effect?
A real estate purchase agreement would be needed.
An agreement between the parties that specifies the sale and conditions. You may wish to use a real estate attorney to draw it up.
I hope this has been at least helpful.
It has been very helpful. Thank you for your help, and I appreciate that you were able to jump right online, after my first response. I am glad to give you a favorable rating!
Your positive rating is always thanks enough.If you could also participate in the very short survey that Just Answer will send you by e-mail I would appreciate that very much.