Discussion:Domestic Partner Mortgage Interest Deduction
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Discussion Forum Index --> Tax Questions --> Domestic Partner Mortgage Interest Deduction
| 9 February 2007 | |
| My situation is this: Both my DP and myself are on the title of the home and the mortgage. The 1098 lists both of our names, but only his SSN. In the past, my DP has taken the full deduction as he was the only one itemizing deductions due to his much higher income. This past year, I made quite a bit more and was hoping to take the full mortgage interest deduction, as I will be itemizing instead of him. Our checking account is joint, and our mortgage payment is automatically deducted each month. So the question is: Can I do this? I know I need to write a letter, but can I take 100% of this deduction, or am I better off just sticking with my DP taking the full deduction. If I itemize, we will be getting back an additional $650(which is a lot for us). | |
| 9 February 2007 | |
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. See IRS Publication 936 | |
| 9 February 2007 | |
| If you are both on the mortgage I would suggest a letter to the company asking that both SSN's appear on the 1099. That way you can allocate the interest in a manner that is most beneficial to each party.taxea | |
| 9 February 2007 | |
| The answer to your question would depend, in part, whether you live in a state that recognizes community property for domestic partners. If not, then you can only claim a deduction for the amounts of interest and taxes that you actually paid. You cannot allocate the deductions based on who would receive the greater tax benefit. | |
| 9 February 2007 | |
| Oregon is not a community property state, so I would have to allocate based on amount paid. My question though is, since our funds are co-mingled, couldn't it be extrapolated that I paid the taxes and mortgage for the year since I did make more money? Of course, there is no way to prove this, as the money for the taxes was paid by the mortgage company(in both of our names), and the mortgage paid from our checking account automatically(checking account in both of our names, as well). I will request that the mortgage company add my SSN to the 1099, but I still have this nagging issue for my 2006 tax return. | |
| 9 February 2007 | |
| The Tax Court, when dealing with comingled, untraceable funds, has traditionally taken the approach that each owner contributed 50% to the mortgage payments. | |
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