Who claims interest on mortgage loan?

Question

My girlfriend and I lived together in the same home for all of 2006. The home loan is entirely in my name, the title is in both of our names. How do we claim the interest paid on our tax returns? Basically, can she claim it at all? Can we split it? We both split the payments for the entire year of course. I'm just looking for the right answer WITH a reference. Though probably I'll just end up claiming it anyway and giving her half of whatever it does to my refund. Thanks folks!

Answer 1

I've had an accountant doing my taxes all along so assuming he's doing what is allowed for the past 8 filings my husband & I jointly own a house with my aunt.
The mtg is in our name, but she's on the title. And we haven't had a problem with what we do,

We basically claim 2/3 on our return and my aunt has taken 1/3 on hers (some years we take it all due to her not having enough deductions to make filing anything more than the ez form in which case the deduction wouldn't matter any way) As long as you don't both claim full credit you shouldn't have a problem because the final outcome would add up correctly, even in an audit ... as long as bottom line isn't more than what's there.

I hope this helps ... you can always call the tax help lines to check for sure. I know even the irs has help lines.

Answer 2

If you split the deduction, because you each need to exceed your standard deduction in order to benefit from itemizing. Then, chances are neither one of you will benefit. So my suggestion is that one of you take the whole deduction.

If neither one of you have child to claim, chances are whoever makes more money has higher marginal tax rate and therefore will benefit more from taking the entire deduction.

Whoever gets the benefit from the deduction to give the other person half seems like a civilized approach.

Best wishes.

Answer 3

Look at the 1099 the bank will send you. If only your name is on it, then you should claim it all. Otherwise IRS will question you.