Discussion:Home mortgage for joint tenants
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Home mortgage for joint tenants
| 17 March 2006 | |
| If a unmarried couple purchased a home together (primary residence) and they hold the title as joint tenants or tenants in common and both names are on the loan, can one person deduct all the interest or must it be allocated by percent of ownership. | |
| 17 March 2006 | |
| My understanding is that it can go either way. Depends on how money is actually contributed. If both own it, but only one has income, then the one with the income who pays the freight, would claim the whole thing. | |
| 18 March 2006 | |
| Each joint tenant may claim a deduction for the interest that he actually paid. | |
| 18 March 2006 | |
| which in the case of comingled funds is a matter of opinion. | |
| 18 March 2006 | |
| In the event of an audit (admittedly unlikely)the IRS could well demand proof of whose funds actually made the payments. If the funds were comingled, the deduction would then most likely be split based on an allocation of the funds put into the joint account by the individual owners. To nail down the deduction, preplanning and payment from individual accounts would be best. | |
| 18 March 2006 | |
| My understanding is that a joint tenant can take any or all of the mtg deduction but tenants in common can only take up to their percentage of interest owned, no matter how much they paid. | |
| 19 March 2006 | |
| It depends on the state in which the property is located.
It is true that a joint tenant may deduct up to 100% of the property taxes on a jointly owned property. This is because each joint tenant is jointly and severally liable for the 100% of the property taxes. It is also true that in some states, a tenant in common is not jointly and severally liable for 100% of the property taxes on TIC property; however, if he pays 100% of the property taxes to preserve his equity in his undivided interest, then he may deduct such payments (e.g. California). The interest paid on a jointly executed home mortgage should be fully deductible by the payor since each mortgagor is jointly and severally liable on the mortgage. | |
| 1 February 2007 | |
| Unmarried couple own house (both on mortgage and property deed - she is listed first all paperwork) - for 2005 I let her take the entire mortgage and property tax deduction since it was more beneficial in terms of return dollars. NOTE - we lived in the property a couple of months prior to the end of 2005 and the property tax/mortgage interest wasn't a large amount. If we decided to split the amount last year if would be below standard deduction level.
For 2006 the mortgage interest/property taxes is a large amount and it makes a difference on who actually takes the deductions. If we split mortgage interest & property tax deductions 50/50 we are +$1230 If she takes the entire mortgage interest & property tax deductions we are +$1710 If I take the entire mortgage interest & property tax deduction we are +$2670 I don't want to raise any red flags since she took ALL of the mortgage interest/property tax deduction last year if I was to claim the entire lot for 2006. Do you think it would be wise to split it 90% me and 10% for her just so she has a part of the deduction on her return? Or would we be safe simply me taking the full deductions for the best financial gains? | |
| 1 February 2007 | |
| Jsoul, if you're in it "together" (are you not?) then I'd say go with the highest deduction. | |
| 5 February 2007 | |
| We are in it together. If the IRS seeks proof - we can only show the mortgage and taxes were split 50/50 and not paid 100% by me ... This is my main questions - is this something we should roll the dice on and let me take the 100% deduction for an additional $900 in refund? | |
| 5 February 2007 | |
| If this goes to Tax Court, the court will take the approach outlined in TaxRef's reply on March 18. Be prepared to substantiate the amount that each joint tenant contributed towards the mortgage payment. If you can only prove 50%, then it would be foolish to claim 100%. | |
| 7 February 2007 | |
| If I do report 100% of the deductions for mortgage interest and property tax, would that go on Line 11 (Sch A) since it is not reported under my SS #? | |
| 7 February 2007 | |
| He who paid it [cash basis taxpayer] AND HAD THE OBLIGATION TO PAY IT may take the deduction. | |
| 7 February 2007 | |
| He who paid it [cash basis taxpayer] AND HAD THE OBLIGATION TO PAY IT may take the deduction. | |
| 13 February 2007 | |
| If I do report 100% of the deductions for mortgage interest and property tax, would that go on Line 11 (Sch A) since the mortgage interest and property taxes are not reported under my SS # (even though my name is on the 1098's)? | |
| 19 February 2007 | |
| I have joint ownership of a condo with my two brothers. One of my brothers has asked the other two of us to buy him out. We have owned the property since 2004. The two of us that still live in the condo took over payments in October of 2006. The brother that wants to be bought out wants to know how much equity he has in the property. What is the best way to determine his equity, and how would we go about paying him?
Additionally what is the best way for the three of us to split up the home mortgage interest. Each one of us would take the standard deduction if we did not claim the mortgage interest. If it were split up equally between the three of us, we would still take the standard deduction. If one of us takes the full mortgage interest, how can I determine the splitting of the return equally. Note: The ones not taking the mortgage interest will still get a return if they do not itemize. | |
Questioning (talk|edits) said: | 21 July 2007 |
| When my husband and I divorced two years ago after a short, 4-year marriage; I remained in the house which had been my home since 1980. I requested a Quit Claim Deed at the time of the divorce, but my then husband and his attorney told me that the courts were not doing quit claim deeds anymore with divorces. I had with me a copy of the quit claim deed from previous marriage that ended some 20 years prior and the paralegal asked me to let her see it since she had never seen one, and her actions helped convince me that the statements made re: quit claims deeds were true. the attorney and my then husband assured me that the divorce decree would be the same as having as a QCD. (Yes, I know that I was stupid to believe my then husband that we really did not need to use two attorneys. I was taking care of his invalid mother on hospice in our home and had little time for appts.) The mortgage is still in both names, with his name a primary; but all the mtg. payments come out of my checking account and I receive no monies from him. He says that he is entitled to the interest since it is on his SS# and not mine. I was not aware when he talked me into refinancing the house at a lower interest rate that the listing of his name first on the mortgage made him primary and me, the wife. as secondary. I do not think that most women are aware of this and something needs to be done to address matter where all women can see the repercussions.
When I filed my taxes, I used all of the interest and sent a letter to IRS saying that I paid all of the interest and that if the interest was also claimed by my ex that he had made no payments on the mortgage at all. I have not heard back from the IRS about this matter. How do I get the mortgage holder to use my SS# for the interest paid? They know that it paid by direct withdrawal from my personal checking account, but they tell me that they never change the primary borrower. What recourse do I have? | |
| 21 July 2007 | |
| ?ing: if you paid the interest, then you deduct it. Simple as that. If you are audited, you show the IRS that you are obligated on the note (you owe it) and that you paid it (your bank statements).
It is your ex who should be in trouble, not you. | |
| 31 December 2007 | |
| I have a question. I took out a mortgage on my home in July of this year. If me and my girlfriend are both on the loan, and I pay the mortgage, can I just file all the mortgage interest on my tax return? Does it really matter if we split it? She doesn't really care if I file the whole thing in my name, but I need to know if I am allowed to do this since she is on the mortgage. | |
| 31 December 2007 | |
| She can not deduct mortgage interest if she does not pay. You should deduct it. | |
