I co-own my home with my boyfriend. Can we both deduct the mortgage interest on our individual tax returns?

Question

We bought in mid-2006. I would like to make sure whatever answer we receive applies to state and federal returns.

Answer 1

If you are itemizing your deductions on Schedule A then you would follow the rules from Publication 936,
If you are both legally liable for the debt.

More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line.

Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her share is.

Answer 2

and, of path, your divorce decree is silent on the placement, isn't it? [disgrace on the divorce criminal experts -- they could have particularly dealt with this.] if the two names are on the mortgage and the divorce decree is silent, you will could examine the the rest divorce language and make certain what ultimate follows the language. occasion: if the divorce language says something to the consequence of merchandising the living house and splitting the proceeds, and the internet funds substitute into chop up 50/50, then the flair deduction additionally should be chop up 50/50. on the different hand, if the decree says that your ex- substitute into to get each and all of the proceeds [for the reason which you gained a lump sum of money], then he gets the completed deduction. of path, if in basic terms one call substitute into on the mortgage, that guy or woman gets the completed deduction. and if the completed bit substitute into finished in the past the divorce and the decree is silent, you will the two could come to an contract on the deduction [possibly he gets the deduction and could pay you 0.5 the internet tax value discounts in funds], or make your ultimate case to IRS for why you may get the element you establish to declare. [hint: while you at the instant are not likely to itemize -- there is not any value in the deduction to you, is there?]

Answer 3

State laws vary. In some states it's not deductible at all (PA is one like that). If it's deductible for your state, you definitely would not both be able to claim the full amount. In many states, you'd have to treat it the same as you did at the federal level. In some states the person whose ssn is on the forms might be the only one who can deduct it, and in some states you'd be allowed to split it. So sorry, there's no "one size fits all" answer to your question at state level.

The previous responders who said that on federal you can either split it, or just one of you claim all of it, are correct.

Answer 4

You each can deduct half of the value of the house or one or the other of you claim the whole thing on your taxes. If you are together I don't see much difference.