2006-10-26 12:01:49 · 10 answers · asked by rawnjawn 1 in Business & Finance ➔ Taxes ➔ United States
Until last year you could not. But a new tax ruling indicates that you would be liable for the loan if the person who took out the loan failed to pay or at least your interest would be in jeopardy and therefore you may take the deduction.
2006-10-26 20:12:49 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Sorry. According to the IRS Publication 936 (attached), it says, "You must be legally liable for the loan. You can not deduct payments you make for someone else if you are not legally liable to make them." If you co-signed the loan, you are legally liable. Otherwise, you have two choices. Either get your name on the loan, or give the mortgage money to the person whose name IS on the loan and let them get the deduction.
2006-10-26 15:59:28 · answer #2 · answered by TaxMan 5 · 0⤊ 1⤋
You need to be careful when you make transactions like this. If this was a favor to somebody, you can "gift" it to them up to I think 15K per year. Anything over that will need to be charged to your lifetime estate tax shelter (which lowers the amount you can pass on to heirs tax free). If this was in fact a loan, you will have to record imputed interest and record that as income on your 1040.
2006-10-30 09:52:27 · answer #3 · answered by kjhenkel 2 · 0⤊ 0⤋
A few years ago my sister sold a home and the bank issued a 1099(?) to her and one to my father (who was on the loan but not the tile) when only my sister should have received one. The accountant they consulted told my father to file another 1099(?) showing the full amount belonged to my sister. Something similar probably applies in your case. Please consult a CPA or tax attorney. They should actually know what I am trying to say.
2006-10-26 13:20:15 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
If you can actually prove you made the payments on it - you should be able to claim the interest on the payments you made.
Check with the IRS to verify this.
They can give you an absolute correct answer.
2006-10-26 12:48:12 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You will need to show proof of payment along with a detailed explanation and accompanying copys of title and real estate contract and or agreement.
Darryl S.
2006-10-26 12:05:07 · answer #6 · answered by Anonymous · 0⤊ 0⤋
in the adventure that your credit is undesirable, it is going to likely be undesirable no count what challenge. it quite is the persistent fee in line with month with out entering into the back of that provide you with greater ideal credit. i in my opinion might pay 0.5 of the 6k very own loan, and shop making money. shop mayking fee on the 6 % card as this might help your credit interior the long-term besides. that would desire to go away you approximately 7k left for the residing house to place away. on occasion new homeowners gets a wreck for their first residing house and you will no longer choose plenty better than that. relies upon on the place you from.
2016-12-28 05:53:14 · answer #7 · answered by purinton 3 · 0⤊ 0⤋
No. The interest statement is issued to the person listed on the mortgage.
2006-10-26 12:03:53 · answer #8 · answered by aint_no_stoppin_us 4 · 0⤊ 1⤋
i am no tax guy but i would think if you have proof that you make the mortgage you can wright it off. but make sure no one else is.
2006-10-26 12:11:02 · answer #9 · answered by blackrealty 3 · 0⤊ 0⤋
not if your name isn't on the loan..
2006-10-26 12:04:14 · answer #10 · answered by Wannabe007 2 · 0⤊ 0⤋