Discussion:1098 Multiple Borrowers
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Discussion Forum Index --> Tax Questions --> 1098 Multiple Borrowers
Shawn12345 (talk|edits) said: | 3 April 2006 |
| I own my house with a friend, the 1098 has both names on it. Do we have to split the interest paid amount on the 1098 in half and each file it or can we put the full amount on only one of our 1040/Sched A?? Please help!
Thanks | |
Shawn12345 (talk|edits) said: | 4 April 2006 |
| So there is no way to include the whole amount of interest paid on one borrower's return only? We'd get a bigger deduction that way I think. How do you prove who paid what over the course of the year? | |
| 4 April 2006 | |
Pub 936 More than one borrower.
If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her share is. | |
| 4 April 2006 | |
| If the 1098 shows both social security numbers you can allocate it at any percentage you want. Doesn't matter who paid what.
Open the statement box and use this explanation: Allowed mortgage interest: xxxxxx Allotment adjustment by agreement of owners: -xxxx taxea 16:24, 4 April 2006 (CDT) | |
| 19 April 2006 | |
| Taxea... where did you read that the explanation and presenatation of both SS # would allow just one person the right to take the deduction....isn't the general rule...."if it takes money away from the gov't....its probably not kosher"? If it is o.k., then it should be documented somewhere, right? | |
| 19 April 2006 | |
| Deduction should be based on contribution to the payment. Who it's reported to matters not, other than in keeping it correct on the return to avoid unnecessary IRS mail when they don't match up. I have an LLC which is merely a deer camp Up Nort, and mortgage comes with MY SS# on it. I divvy it up to the owners...never gotten mail. | |
| 21 July 2008 | |
| Does anybody know how the schedule D would be presented if house owned by two people is sold? Do you divide the sales proceed by two and put each half on each Schedule D of the owners?
Is there any other way to do it than to divide the sales proceeds and the basis of the property in two (each owner 50/50)? Thanks for your help! | |
RoyDaleOne (talk|edits) said: | 21 July 2008 |
| Is the house the principal residence? | |
| 21 July 2008 | |
| StefCPA, the sale would be divided according to the percentage of ownership. For example, if I am a 10% owner of a residence, my share of the sales proceeds would be 10%. Check the grant deed. | |
RoyDaleOne (talk|edits) said: | 21 July 2008 |
| You could attach a schedule showing the gross price, cost and net profit and enter the 50% of the net profit only on the Schedule D. This would be similar to how a partnership would report the sale. | |
| 21 July 2008 | |
| we are talking about a principal residence. I think I will just go with describing in the Schedule D: "Sale of Main Residence- 50% Owner" | |
| 24 July 2008 | |
| to keep from getting nastygrams. or the exclusion may not take care of all the gain. | |
| 24 July 2008 | |
| If exclusion applies, do not report on schedule D. That is what the IRS wants. | |
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