Discussion:Joint mortgage
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Discussion Forum Index --> Tax Questions --> Joint mortgage
| 15 March 2006 | |
| Two taxpayers have a joint mortgage. 1 1098 reflecting total interest. Is only 50% entered on Sched A per Taxpayer. If so will this not create a problem if 1098 amount does not agree with return. Help will be appreciated. | |
| 15 March 2006 | |
| Enter the whole amount to start with, and then deduct the 50% share, kind of like nominee interest...otherwise, you'll definitly pull a correspondence audit at a minimum. | |
Chautauqua (talk|edits) said: | 15 March 2006 |
| Assuming that the two taxpayers are not married, why not take all the 1098 interest on the taxpayer with the higher marginal rate, and a standard deduction on the one with the lower rate? Are you preparing returns for both individuals? | |
| 16 March 2006 | |
| Showing 50% of the reported amount on form 1098 being reported to a taxpayer will not create a correspondence audit to that taxpayer or any other inquire. The IRS collects zero revenue by taxpayers who do not claim all their deductions. | |
| 16 March 2006 | |
| I agree with DZCPA. I have had clients to all kinds of crazy things with Form 1098 mortgage interest to cause the tax return not to match what was reported on the Form 1098. In twenty years, I have never had any kind of inquiry for under reporting the mortgage interest deduction. Surprisingly, I can only think of one that I've received for deducting more than the FOrm 1098 amount. | |
| 16 March 2006 | |
| Well, sorry, but I've had letters re: mortgage interest, and it was the only issue. In one case, it was off $1. Yes. | |
| 16 March 2006 | |
| That is money well spent by the IRS. Did you send them a quarter for the tax due? LOL | |
| 16 March 2006 | |
| Actually had a client get a check for...watch this....$.01 from Fidelity. They erred when he cleared his retirement accounts and moved them. I wondered. Hmmm. I told him not to cash the check. Then I wondered. Oh, will there be a 10% penalty attached since it wasn't rolled over? | |
| 16 March 2006 | |
| Chautauqua, I am doing both returns. They are sisters that lived in the same home. Problem is mortgage statement is in both names that means they are legally responsible for 50% each. So I presume one cannot claim the others deduction, please correct me if I am wrong. 1099S made out 50/50 at sale.
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