Mortage interest deduction tax question?

Question

I bought a townhouse 1 year ago and I've been living with my only brother. We pay the mortage 50:50 but only my name is on the title. When filing 2006 tax returns, can we both deduct the mortage interests?

Also, how do I add my brother's name to the title?

I forgot to add that the mortgage is on my name.

Answer 1

If your brother gave you money and you paid the mortgage, then you can deduct the full amount of the mortgage interest. Similarly for real estate tax.

If your brother directly paid any of these expenses to the mortgage company or taxing body, then you cannot deduct expenses he paid.

You have to own the property, be on the mortgage, and pay the mortgage to take the deduction. Therefore your brother has no deduction.

Your local Recorder of Deeds office would know how to change the title. Some paperwork and fees may be involved. Putting the brother on the title would allow him to deduct real estate taxes but not the mortgage. His name also has to be on the mortgage. Contact your lender to find out how that might be accomplished.