What is the best way for unmarried joint homeowners to file taxes?

Question

My fiance and I purchased our first home January 2006. Because we are unmarried, we can't file jointly, so I'm wondering what the best way is for us to file our taxes in terms of the mortgage interest, home expenses, etc. Who should claim it?

Someone told me that the individual who has the larger salary should claim the home. However, I make the larger salary, but he is considered the "borrower" whereas I am the "co-borrower" of the mortgage. (So, his SS# appears on all of our communications from the mortgage company.)

Does it even matter?

Thank you for your advice!

Answer 1

You should theorhetically be able to split it proportionally according to ownership. In this case probably 50-50. You might want to consult a tax professional.

Answer 2

You have to 1) own the property, 2) be responsible for the debt on the property and 3) pay the mortgage to claim home mortgage interest deduction.

If you are co-borrowers and co-owners, you should deduct the mortgage interest in proportion to the percent of the mortgage you each paid.

It doesn't matter whose name is borrower or co-borrower or whose SS is first on the loan as far as the deduction being allowable. If the IRS questions your deduction you can prove that you are on the mortgage and deed.

If you want to have one of you claim the entire mortgage, then it would be good for the other to pay for things other than the mortgage payment and have the one claiming the mortgage interest pay the mortgage note. That way you have a basis for letting one person claim the entire amount.

Answer 3

File separately and each clain HALF ownership in the house.

The mortgage means nothing to the TAx People. What matters is who's name is on the TITLE. If you are both on the title, then you both can claim half the value.

Answer 4

It's called "nominee." He adjusts the amount and includes your SS# on his return. You will indicate his SS# on the return.