Discussion:$1 million mortgage interest limit apply to related co-owners

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Discussion Forum Index --> Advanced Tax Questions --> $1 million mortgage interest limit apply to related co-owners
Discussion Forum Index --> Tax Questions --> $1 million mortgage interest limit apply to related co-owners

Cpa660 (talk|edits) said:

13 March 2009
Son (a minor) owns 60% of the family residence through his special needs trust (grantor trust). Parents own the other 40%. Home was purchased in 2008 for $1.6 million, with a mortgage of $1.3 million. Son's trust pays 60% of the mortgage and property taxes; parents pay 40%. I plan to have the son deduct 60% of the expenses and parents deduct 40%. Question: are they each entitled to $1 million of acquisition indebtedness on this property, or is there a limitation?

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