My brother and I purchased a home together in early 2006. How should we go about filing our taxes?
2007-01-03 10:36:18 · 3 answers · asked by neilio 2 in Business & Finance ➔ Taxes ➔ United States
To deduct mortgage interest, you most be legally obligated to pay the mortgage, and have actually paid the interest. If the 1098 form the mortgage holder is in only one name, the correct method is for that person to issue a 1098 to the other for their portion of the interest and taxes. Individuals can issue a 1098. My dad had to issue one to my sister 2 years ago when the bank incorrectly issued him a 1098 for her home. He was listed as a POA to sell the house, because she had moved out of state. You may need to ask a CPA how to do this.
2007-01-03 12:24:32 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
I would treat it in this manor.
Whoever the 1098 name is in report the full amount and then a negative amount below it with the others social security number on it.
On the other return report amount paid in mortgage and use the Social security number of the other for reference, this way the amount deducted between the two SSN will tie to the 1098 if the IRS starts asking questions.
2007-01-03 18:53:44 · answer #2 · answered by Jerry 3 · 0⤊ 0⤋
You each report the intrest in proportion to what you each paid.
2007-01-03 18:41:57 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋