Have a Tax Question? Ask a Tax Expert
Hi so sorry but you’re not allowed to claim the mortgage interest deduction for someone else’s debt. You must have an ownership interest in the home to deduct interest on a home loan. This means that your name has to be on the deed or you have a written agreement with the deed holder(s) that establishes you have an ownership interest. For example, a parent who buys a home for a child that is in the child's name alone cannot deduct mortgage interest paid on the child's behalf.
Heres and excellent article from a legal website on this: http://www.nolo.com/legal-encyclopedia/when-home-mortgage-interest-is-not-deductible.html
Heres the IRS guidance: http://www.irs.gov/publications/p936/ar02.html
I wonder if were having system problems ... I see you coming in and out over and over...
Thanks. How a written agreement with the deed holder that establishes that I have an ownership interest is accomplished? is there an IRS form that we need to file?
Thanks in advance.
Ahhh hang on juuust a moment
Also, would this agreement be good for both the home
the home mortgage loan interest and the property taxes. I'm not sure why the screen keeps falshing, sorry.
What it comes down to, more than ownership (or al least as much) is being on hte loan *being responsible for the debt)
Hi, just checking back in ... as I never saw you come back into the chat ... But again, just to be sure you saw that last post (the ownership piece can be accomplished through a quit-claom deed or other conveyance of title (which you can attach, once recorded, to the return), nd the other piece is that you arw ON the loan (responsible for the debt)
(sorry for the typos) ... again "quit-claim" deed or other conveyance of title and being ON (added to, if need be) the loan itself
Hope this helps