My sister and I own a second home jointly and file separately. Can we claim the interest deduction? If so, can we each claim the full deduction on our federal income tax, or would it be a partial deduction split 50/50?
2007-02-15 08:48:50 · 6 answers · asked by vaxxbell 1 in Business & Finance ➔ Taxes ➔ United States
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.
2007-02-15 09:12:52 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You can claim the mortgage interest on your principal residence plus a second home, subject to the maximum mortgage limit of $1,100,000. If the home is owned jointly by you and your sister and each of you pay for half of the mortgage payment, then you would split the mortgage interest deduction on this second home 50/50.
2007-02-15 08:53:11 · answer #2 · answered by jseah114 6 · 1⤊ 1⤋
If you are both listed on the mortgage, you can split the mortgage interest deduction. If only one of you is on the mortgage, only that person can take the deduction. You must be legally obligated for the mortgage payments in order to claim the interest deduction.
2007-02-15 08:55:04 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
i'm interpreting your question to point that you at the moment have a house and could be figuring out to purchase a second domicile in 2008. you intend on renting your first domicile. If it is actual, then you quite will be replacing your first domicile to a house sources in February 2008. as a lot because the date you substitute your position to a house, you are able to take your loan interest and authentic sources taxes on agenda A. for sure, on your second domicile, each and each and every of the loan interest and authentic sources taxes are deducted on agenda A. From the date you substitute your first domicile to a house, you'll educate your earnings and fees of the house on agenda E. you need to learn the tutorial to agenda E to make certain what costs are allowable. you need to also study what occurs once you promote the first domicile. in case you wait more beneficial than 2 years to promote this domicile you'll lose the exclusion on capital useful aspects which will be accessible to you. when you're renting the sources to a relative for decrease than the market cost, then you quite basically isn't waiting to declare a loss or carry that loss ahead. with the intention to declare a loss in the present 3 hundred and sixty 5 days you need to cost the triumphing lease and characteristic earnings lower than the a reduce for passive losses.
2016-12-04 05:35:16 · answer #4 · answered by youngerman 4 · 0⤊ 0⤋
Jseah is absolutely correct! However, you should ask your CPA for advise prior to either of you taking the deduction.
2007-02-15 08:55:49 · answer #5 · answered by merlins_new_apprentice 3 · 0⤊ 1⤋
YES each of you claim your portion. Have a statement noting that each of you are entitled to how much (in dollars). This must be notorized, one copy for her one for you. IRS if they question will accept the claim based on the notrized document (receipt).
2007-02-15 08:57:42 · answer #6 · answered by whatevit 5 · 0⤊ 2⤋