Sould we split the interest or have just one of us claim it? Are there anyother issues related to this that I should be aware of?
2007-01-26 09:36:52 · 7 answers · asked by Jason R 1 in Business & Finance ➔ Taxes ➔ United States
The one with the highest adjusted gross income would benefit the most from the deduction. As long as you are both on the loan as being liable for repayment you can choose yourself. Also consider other deductions you may have in making this decision, like car taxes, state and local income taxes, property taxes, and charity contributions. So take all the possible deductions each of you have individually and see which one would qualify for the largest itemized deductions. The other will be stuck with the standard deduction unfortunately. I don't know if there are children involved in the relationship but head of household status may need to be considered. Without exact data this is the best I can offer you. Good Luck!!!
2007-01-26 09:45:03 · answer #1 · answered by misskenzie12 2 · 1⤊ 1⤋
You could split it or one of you could claim it all..it would depend on which way you would get the most money back. If you do split it you should have a disclaimer signed and dated by the other person with the date that they are either not claiming the interest on the house for the particular year or that they are claiming l/2 of the interest. This would not go to the IRS but would be kept with your paperwork.
2007-01-26 09:44:10 · answer #2 · answered by mental 3 · 0⤊ 1⤋
My significant other and I have owned a house for 20 yrs now. We initially had tax preparer decide if we should split the interest deduction, or if one of us should take the entire deduction. Turns out being I make more money it was best I take the deduction. That being said, it's best to consult with your tax professional for their opinion as to what's best in your particular situation.
2007-01-26 09:46:02 · answer #3 · answered by Nutz4Skwerls 3 · 1⤊ 0⤋
Whosever social security number is on the 1098int should claim the deduction. If you both paid the interest during the year, just split the refund.
2007-01-26 09:48:08 · answer #4 · answered by crazydave 7 · 0⤊ 1⤋
you each and every can declare 50% of the loan pastime and taxes on your earnings tax. you additionally can agree that on the different share that works for the two one in each and every of you, as long by way of fact the excellent does not exceed one hundred%. as an occasion, if one guy or woman is interior the ten% bracket without the deduction, and the different is interior the 28% bracket, the guy interior the 28% bracket might desire to take the excellent deduction, by way of fact it extremely is properly worth greater (assuming settlement of the two events
2016-12-16 14:20:55 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The person who actually paid it gets the deduction. If you split the mortgage payments 50/50 then you split the deduction.
2007-01-26 09:42:39 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 1⤋
split the interest, make sure you do it according to percentage. how much you pay, and how much she pay. at the end of the day, you must remember this, the only person that will never leave you is yourself. Sorry, no heart feeling, just be safe for a rainy day mate...
2007-01-26 09:43:04 · answer #7 · answered by acu 2 · 0⤊ 1⤋