Is there a way to claim mortgage interest you paid for some one else?

Question

I made my mother-in-laws house payments for the entire year of 2006. Is there a way to use the interest for my deductions?

Answer 1

No, sorry, you can't take the deduction. To be eligible to take a deduction you must be legally obligated for the mortgage payments and actually pay the interest.

Therefore you cannot take the deduction as you are not legally obligated and she cannot take the deduction as she did not actually pay it.

You could preserve the deduction for her by gifting her the money to make the payments and have her make the actual payments. As long as the total payments for the year were less than $12,000 for the year there would be no gift tax consequences.

Answer 2

The loan should be on your call. The tax invoice will come to YOU. i'm particular the reassurance coverage is issued on your call. So the in hardship-free words man or woman who can legally declare those expenditures is YOU. I trust the different responder. What you're doing is 'renting' the resources to them. the in hardship-free words time you've a situation with it really is if what they're paying is less than market fee for that different form of resources. The IRS wouldn't have a situation with you having monetary dealings with relatives providing you cope with them purely like you ought to a stranger off the line. try to be filling out a agenda E and itemizing the quantities they pay as income on the resources. then you absolutely ought to declare the pastime and coverage funds and different expenditures alongside with DEPRECIATION as deductible expenditures. what's left over is both income or loss. that is great to have a loss from a residence resources providing the quantity isn't any better than $25,000- per 3 hundred and sixty 5 days. you ought to decide on to talk with a Tax specialist about your situation. The nationwide association of Tax professionals keeps a zipper Code Searchable Database of their contributors. click the first link less than to pull up the hunt engine. enter your zip code and a radius to seek interior and also you ought to get a really lengthy itemizing of Tax professionals close to you. word that they could be Tax attorneys, CPA, Enrolled brokers or Unenrolled Preparers (like us). At this element you extremely do not look to decide on a Tax lawyer or CPA or EA. purely call round for some tax suggestion and verify on expenditures. you're waiting to save some money with the perfect TIMING. Early February is exceptionally busy for Tax professionals. the first 15 days of April is likewise exceptionally stressful...yet...March is exceptionally quiet. So in case you may wait till then you absolutely should be ready to 'make a deal'. click the 2d link to pull up an Adobe replica of IRS e book 527 - Residential residence resources for extra education. There should be a replica of the agenda E contained in the Pub...yet you may click the 0.33 link for an Adobe report you may replica or save or print as you opt on...and the subsequent link for the teachings for that different style. G'success with this... Mike Womack, Sr. major different 0 ranges Tax LLP Moore, ok

Answer 3

nope