How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55711
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

We have a contract for deed with my grandmother for her house.

This answer was rated:

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 4 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.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!

Customer: replied 4 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 4 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.
Richard and other Tax Specialists are ready to help you
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!