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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53685
Experience:  29 years of experience as a tax, real estate, and business attorney.
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We have a contract for deed with my grandmother for her house.

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We have a contract for deed with my grandmother for her house. My girlfriend and I pay the mortgage payment directly to my grandmother. Can one of us deduct the interest we paid her or do we have to split it
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. Can you tell me the total amount of interest for 2012? Thanks.
Customer: replied 3 years ago.

I don't have it with me at the moment. Is there a way for me to get back to you when I get home?


Thanks for replying...not to worry. BotXXXXX XXXXXne is that, yes, one of you can take it all. If you each pay 1/2, then the amount one party takes that the other party paid would be treated as a gift to the party taking the deduction. If the amount of that gift is $14,000 or less it qualifies under the annual gift exclusion amount and you need not report it at all. I would presume that the total interest for the year is less than $28,000 so you need not worry about reporting it. One of you can simply take the entire deduction.

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Customer: replied 3 years ago.

it was only 767.45, grandma is only charging 1.08%. What about property tax? only paid in 1731. for the year, can one of claim all of that also

Customer: replied 3 years ago.

Also, where on the tax return do we claim this. since it is not a bank we will not receive a document from her

Either of you can claim 100% under the concept explained above but only if you itemize your deductions. Both of these amounts would be included on Schedule A to your Form 1040.
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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!