My girfriend and I own a home together. It would be more benifcial to her if she could claim all interest on the 1098. Under what circumstances is this acceptable?
2007-02-07 08:09:02 · 10 answers · asked by Scott V 1 in Business & Finance ➔ Taxes ➔ United States
both of our names are on it but only her ssn. Frankly it would make more financial sense for her to claim all the interest. The part that concerns me is under the caution on the statement which suggests that "you may only claim what was actually paid by you" which may be difficult to prove in our case since I write the mortgage checks.
2007-02-07 08:23:41 · update #1
She would have to be obligated to repay the mortgage loan. Otherwise, the 1098 would not be in her name.
2007-02-07 08:16:02 · answer #1 · answered by mortgagelns 3 · 0⤊ 4⤋
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.
2007-02-07 16:25:44 · answer #2 · answered by Rob 7 · 0⤊ 0⤋
Who can claim all or part of the deduction depends upon whose name is on the mortgage. If only one of you is on the mortgage, only that person can claim the deduction.
If you're both on the mortgage, most likely only one name and SSN will be on the 1098. That person can either claim the deduction or you can split it. The person whose SSN is on the form should include a signed note with their return explaining that they are sharing the deduction with the other person and give their name and SSN.
2007-02-07 16:22:49 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
Since her ssn is on there, it is going to be easier for her to claim it since it will be reported to the irs using her ssn which will match up to the 1040 returns ssn. A simple written statement from you stating how much she paid you should be sufficient and only produced if questioned. In addition, the problem usually comes up if both are trying to claim the same deduction, so it shouldn't even be an issue.
2007-02-07 16:35:42 · answer #4 · answered by Rhonda M 1 · 0⤊ 2⤋
As co-owners of the property, you can devide up the claim between the two of you in whichever portion you desire as long as the sum adds up to the actual mortgage interest you two paid out together. The proportion can be 50/50, 40/60... or 0/100 as you'd like to do.
I recall someone advised a couple to each claim according to the proportion they contribute to the mortgage payment but that's only if each of you wants to claim to the max of his/her share. In your case, if you both agree your girlfriend should claim all of it and you none of it, I don't think the IRS would care.
2007-02-07 16:21:14 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Only one SSN # can be used to claim the mortgage interest on a home. Therefore only one of you can claim it. If you already know that it would be most beneficial for her to do this, then you have your answer. The most responsible answer though is to check with your tax advisor before making that decision. Hope that helps!
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2007-02-07 16:23:25 · answer #6 · answered by Your Travel Agent 1 · 0⤊ 2⤋
The answer above me may have mortgage experience, but he knows nothing about taxes.
The only reason that the 1098 has one name/SS# on it is because she happened to be the barrower, and you were the co-barrower. There is no difference. One of you can claim the interest. Obviously not both of you.
2007-02-07 16:17:40 · answer #7 · answered by miketorse 5 · 1⤊ 1⤋
If you both paid the mortgage, it is possible to split the interest in half and both claim it. HOWEVER, she needto to refer to your SS# on her return as a nominee. You must reference her SS# on your return.
If she has a higher income it may be more beneficial for her to calim it all. It's up to you.
2007-02-07 16:49:22 · answer #8 · answered by Dizney 5 · 0⤊ 1⤋
Either one of you can claim it so long as you both lived in the home.
2007-02-07 16:16:39 · answer #9 · answered by Mrs. Wifey! 3 · 0⤊ 3⤋
If you two agree she can claim it-
2007-02-07 16:17:48 · answer #10 · answered by professorc 7 · 0⤊ 1⤋