My brother and I are buying a house together in CA. Since he has a higher credit score, we are using only his name on the mortgage application but both our names will be on the home title. Am I still eligible to get tax write off (interest) or is he only able to do so? Thanks!
2006-11-30 07:29:08 · 7 answers · asked by sws 1 in Business & Finance ➔ Taxes ➔ United States
In order to deduct the interest legally, the home must meet the requirements of a principal residence and you must:
1) pay the debt
2) be legally responsible for the debt
As you are not on the mortgage, you are not legally responsible and do not meet the 2nd requirement. However, you can
write a legal binding agreement between you and your brother that states your ownership and responsibility. I suggest it be
done immediately before closing and be notarized.
Please feel free to contact me through http://www.slarson.com/contact or email me directly at Steve@SLarson.com
If you need assistance on either tax or mortgage needs, I specialize in both nationwide.
2006-11-30 17:51:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can deduct home mortgage interest only if you meet all the following conditions.
You must file Form 1040 and itemize deductions on Schedule A (Form 1040).
You must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them. Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.
The mortgage must be a secured debt on a qualified home. “Secured debt” and “qualified home” are explained later.
Below is a link to the IRS's website regarding mortgage interest.
2006-11-30 07:36:10 · answer #2 · answered by Christopher McGregor 3 · 1⤊ 0⤋
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2016-10-13 11:00:52 · answer #3 · answered by ? 4 · 0⤊ 0⤋
the deduction is for intrest paid on a mortgage not because your on the title deed - i wonder why your brother's credit score is higher?
2006-11-30 08:00:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The IRS will view it as one mortgage, one tax deduction. Would be the same if you had your name on the mortgage, and your wife helped make payments, only one tax deduction per mortgage.
Darryl S.
2006-11-30 07:44:35 · answer #5 · answered by Anonymous · 0⤊ 2⤋
The individual who has legal responsibility for the debt takes the deductions (for what THEY paid only). Can you also put your name on the loan but have him co-sign for your portion?
2006-11-30 07:37:19 · answer #6 · answered by Dee 4 · 2⤊ 0⤋
If the mortgage is in his name then the interest is being paid by him from a legal standpoint. so only he is entitled to the deduction.
2006-11-30 07:31:50 · answer #7 · answered by Anonymous · 2⤊ 2⤋