are there different ways to split the deduction legally? do we have to split? what are the real laws on this?
2007-01-18 06:38:46 · 8 answers · asked by Beach_Bum 4 in Business & Finance ➔ Taxes ➔ United States
While the ownership in the house is joint, the 1098 form from the mortgage company only has space for one SSN, and that is the first name on the mortgage as the primary borrower. As far as the IRS is concerned, only that person can claim the mortgage interest (they match the 1098's to the return). However, the IRS will allow splitting the mortgage interest deduction. You can choose whatever allocation percentage you want, BUT the big caveat is that you have to use that same percentage year after year. You cannot change it from year to year. What you need to do, since the 1098's won't match the return, is to attach a statement to each return explaining that the house is jointly owned, the 1098 is only in one name, and that you are splitting the mortgage interest deduction. This statement should also include the name and SSN of both parties and show the allocation of the mortgage interest.
The reasoning behind being able to choose whatever allocation percentage you want is that you can split it 50/50 (based on the ownership percentage), or you can split it based on the contribution each party provides towards the mortgage payment, etc.
2007-01-18 06:54:57 · answer #1 · answered by jseah114 6 · 0⤊ 0⤋
The government will allow to split th mortgage and tax deduction based upon a formula that accounts for the share of ownership in the property. If the property is owned 50/50 and the motnhly payments are equal, then the share reported will be 50% on each return.
2007-01-18 06:43:04 · answer #2 · answered by Anonymous · 2⤊ 0⤋
The 1098 will have the names of all borrowers on it, you can both use the deductions and split as you see fit. However, it might be worth it to just get a CPA to handle the filing, they are worth the money.
2007-01-18 06:46:40 · answer #3 · answered by tiny_dog10 2 · 0⤊ 1⤋
If both of your names are on the deed/mortgage , then you should be able to split it. But, if only one person's name is on it, that is the only person who can take the deduction. You may want to consult your tax accountant (or whomever you have do your taxes, like H&R block) or, even check out the IRS's web-site @ www.irs.gov
2007-01-18 06:43:13 · answer #4 · answered by Maria Rose 5 · 2⤊ 0⤋
If even one of the two wants to sell the prperty against the others wishes the other who doesn't want to sell has the option to buy out the other owner, but if that other owner doesn't want to sell they can be forced to sell and the law says 50/50 no matter who pays what for what length of time.
2007-01-18 06:44:32 · answer #5 · answered by papabeartex 4 · 0⤊ 0⤋
My aunt became advised by a criminal professional even as she became dealing with a divorce that for the reason that her husband became on the call, he might want to technically proceed to stay there and can want to no longer be compelled out. He became a co-proprietor of the homestead and can want to no longer be compelled to go away it inspite of if the different celebration had to promote the resources. both vendors have the right to stay there and do what they opt for with it. also they are both accountable for taxes and liens on the resources. it truly is a puzzling challenge, you should get a criminal professional if it truly is going to become an challenge.
2016-11-25 01:42:10 · answer #6 · answered by pfeifer 4 · 0⤊ 0⤋
sell it, split the money, and if one of the parties wants to own the house buy it on their own.
2007-01-18 06:42:48 · answer #7 · answered by paco 1 · 1⤊ 2⤋
no idea
2007-01-18 06:45:54 · answer #8 · answered by MnM 4 · 0⤊ 0⤋