Couple owns home as JTROS and will file seperately - both fed and State.
2006-12-14 02:59:46 · 4 answers · asked by lhrf1 2 in Business & Finance ➔ Taxes ➔ United States
You can allocate the mortgage interest in whatever manner you wish, however your allocation has to be consistent from one year to the next. You cannot change the allocation percentage from year to year. Also, only one individual (SSN) will appear on the 1098 detailing the mortgage interest paid during the year. You should attach statements to both returns to let the IRS know that you are allocating the interest between two separate returns, otherwise they will disallow the mortgage interest deduction on the return whose SSN does not appear on the 1098.
2006-12-14 04:02:48 · answer #1 · answered by jseah114 6 · 1⤊ 0⤋
married filing separate usually is the least advantageous way to file but if both parties earn around the same income then MFS might be a good alternative. If you have a tax preparer ask them about the possibility of head of household status as well.
remember that if the mortgage which will be 50/50 is less than the standard deduction (5k each) the deduction will be lost unless you include medical and employee business expenses which end up being over 5k. this does not have to be for both parties though.
2006-12-14 14:53:31 · answer #2 · answered by stucaz 2 · 0⤊ 0⤋
allocate in the most advantageous manner for your tax situation
2006-12-14 11:04:59 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋
one gets the deduction - one does not
2006-12-14 11:10:55 · answer #4 · answered by Anonymous · 0⤊ 1⤋