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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12059
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I just bought my first home and I bought it with girlfriend.

Customer Question

Good Evening, I just bought my first home and I bought it with girlfriend. We both file individually file. how do we file for home credit with mtg. insurance credits? How do we both file? How do we respond to the question did he/she buy a home together? who files for the purchase?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi Tony,

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Because you are not married your only options are to file as two single individuals .

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However, you can (as long as you both own the home and are both on the mortgage), take 1/2 of the mortgage interest deduction.

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You only get a tax deduction for mortgage interest you've personally paid. If, say, your co-owner pays 75 percent of the mortgage each month and you pay 25 percent, you can claim 25 percent of the interest and premiums reported on the 1098.

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If your partner, say, got the 1098 instead of you, sit down and figure out how much of the interest each of you can deduct. Report your share on Schedule A. Attach a statement explaining why the lender didn't send the IRS a 1098 with your name on it and how much interest you and your partner paid. Your partner simply subtracts out your share of the payments and reports her own contribution. She doesn't send in a 1098. Only lenders send the 1098... But this is how you ALLOCATE that and report on each your respective return.

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you can also each take the portion of the property taxes that you each paid as an itemized deduction.

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Let me know if I've answered your questions.

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Lane

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I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Expert:  Lane replied 1 year ago.

You don't actually receive any credit or deduction for the purchase itself, the tax benefit there comes when you sell... Your investment in the house lowers your taxable gain on sale.

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You CAN (again in proportionate amounts) deduct things that you paid on behal fof the seller at closing ... such as accrued property taxes.

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I hope this has helped.

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Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane

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I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Expert:  Lane replied 1 year ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane