Mortgage Interest Deduction?

Question

I have an odd question about Mortgage Interest deductions. Here's the situation:

My step-father was paying on a mortgage, but abruptly had to go abroad to care for his ailing parents.

He made no mortgage payments in 2006 at all, nor supplied any income for my mother. My mother had a couple part-time jobs, but could not pay the mortgage. Therefore, the entire year of 2006 I assumed the bill and payed all of the mortgage payments myself.

My question is, who deducts the mortgage interest paid? Should it be on her tax return since the mortgage is in her name?

Or, should it be on mine, since I obviously paid it. I worry that if I put it on hers, the IRS will wonder how she paid all that interest, when she didn't have even a third of that income.

Any thoughts?

Thanks...

Answer 1

The only person that is eligible to deduct the mortgage interest is the person that is on the mortgage. The mortgage company will send her a tax form at the end of the year that shows how much interest she paid during the tax year. This interest deduction follows the social security number of the borrower.

At the closing of the mortgage loan, the borrower fills out a form that makes them eligible to deduct the interest.

Although I see your point since you paid the interest throughout the year, I do not beleive you can deduct on your tax forms.

Good luck!

Answer 2

the ability to deduct the loan pastime is in accordance with the two the paying the money and legally owing the money. Exception #a million. presents. The tax courts ruled that if i do no longer owe the money and that i pay the loan pastime (or sources taxes) with donative motive, then I surely have made a contemporary to the guy who did owe the money. i won't deduct the pastime, however the giftee can. This association is worry-unfastened with mum and dad and young ones. presents over $13,000 can set off present tax. An grownup toddler paying mom's loan pastime would not get the grownup toddler a tax deduction. If mom lives on SSA and would not report, no person advantages. Exception #2. Equitable possession. If I pay the loan pastime (and all different advantages and burdens of possessing the domicile) and that i will instruct that the only reason i'm no longer on the loan is with the help of the fact my credit became so undesirable i could no longer get the loan myself, the tax courts have ruled that i'll be an equitable proprietor and eligible to deduct the pastime I paid on my return. in view that there isn't any donative motive, the guy named on the loan will no longer be able to declare the pastime with the aid of fact he did no longer pay it. it incredibly is authentic whether paid from his financial company account--however the load is on my to instruct that it became my money getting used. i will no longer be able to tell out of your submit how the domicile became offered. Did proprietor C submit something? the place does the money interior the financial company account come from? needless to say if proprietor B can instruct equitable possession and amends, proprietor A would be in a international of injury. whether B would not amend, if A gets audited, A can lose vast time.

Answer 3

Nobody gets the deduction in this case!

You are not eligible for it since you are not liable for the loan.

Your parents are not eligible for it since they did not actually pay it.

Now, here's the real kick in the teeth -- proof positive that no good deed ever goes unpunished: If the total mortgage payments that you made on your parents' behalf exceeds the annual Gift Tax exclusion amount, you owe Gift Taxes for whatever you paid on their behalf.

Answer 4

I would call the IRS and ask them. Most likely there must be some way for you to claim having to financially help out your mother.

Look here for contact numbers http://www.irs.gov/

I have called them for other things.. and when you get to stuff like you are asking then can be really helpful.. i mean it