How much mortgage interest can I deduct if my brother and I are both named on the loan?

Question

My brother and I purchased some investment real estate property (just land) and we are both named on the loan. How do we determine how much interest each can deduct? Do we just split it 50/50? Also, my SSN is the only one listed on the 1098.

Answer 1

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.

Publication 936
http://www.irs.gov/publications/p936/index.html

Answer 2

You can split it 50-50 or just have one of you claim it all (probably you if your social security number is the one on the loan).

Officially you are only allowed to deduct the amount that you personally actually paid and are required to pay.