Who gets to use the house for taxes?

Question

I bought a house with my husband and his mother. My husband and I have 2 children. Who should get to use the house to file taxes?

We are all on the deed of trust. We are splitting the house payment down the middle. Everything is being paid down the middle so the house is going to be a sticky situation. How do I handle it?

Answer 1

In order to take a deduction of mortgage interest, you have to own the property, have your name on the loan, and have paid the mortgage interest. If you or your husband's name is on the deed and the mortgage, and you or your husband paid the mortgage interest, then you can take the interest deduction.

If you and your spouse split the mortgage payments with your mother (whose name is on the deed and mortgage), then you split the deduction as well.

For real estate tax, your name has to be on the deed, and you must have paid the tax. You can split the deduction with a co-owner if the payments were split between the co-owners.

Answer 2

you are all on the deed of trust so you get to take the property tax deduction in the proportions you paid it - you and your husband on the one hand and your mother-in-law on the other.

Is the mortgage the same way? You have to be legally obligated to make the payments to take the deduction. If the mortgage is held the same way as the house, the interest is deductible in the same way as the property taxes.

Answer 3

I would see a tax expert, however it seems that the interest deduction would be split, based on the percentage of payment by each party.

Who's checks are written to the finance company? Do both of you send in a check for your part? This would be for proof purposes if you are audited.

Answer 4

who's name is on title

Answer 5

Just to add to other answers: the 1098 you receive will determine who can take the deduction...whoever has their ssn listed will be able to take the deduction.

Answer 6

you