Two home owners - Not Married - Split of Interest / PPTY Taxes?

Question

Have never really found a YES or NO answer to this question but here it goes.

One home - two home owners - Not married own a house together. Do they HAVE TOO split the mortgage interest and property taxes or can one claim everything on their Schedule A?

Thanks.

Answer 1

You do not have to split the mortgage interest and property taxes. One person can claim everything on Schedule A, subject to the following:

If you both own the house, then you should split the taxes according to how much each person paid. If one person paid all the taxes, they can deduct all of the taxes.

If you both own the house and are named on the mortgage, and no one else is on the mortgage, you should split the mortgage interest according to how much each person paid. Again, if one person paid all of the mortgage, then that person can take all of the mortgage.

So, depending on each of your incomes, you can decide if one person is going to pay all of the interest, or all of the mortgage, and take that off that person's tax return. The other person, for example, could take the standard deduction, and pay other living costs as you agree.

Answer 2

You can only claim the portion that you paid, depending on the income ratio.
One person can not claim payments made by the other.
You are only entitled to claim expenses that you actually paid

To report the mortgage interest
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.

Publication936
http://www.irs.gov/publications/p936/ar02.html#d0e1664

Answer 3

Officially, each person claims what they paid.

So if person A paid 100%, then they claim all of it, and person B claims nothing.

If you split the payments equally, then you both put down %50.

Just make sure what you both claim does not add up to more than %100, or you will definitely get audited and fined.


My gf and I own a house together. Usually one of us will itemize and claim %100 of the interest, property taxes, and depreciation on our rental unit while the other person will take the standard deduction.

Answer 4

you are able to hire out a dozen. Or 50. sure, the activity is deductible yet no longer on schedule A. those residences are not to any extent further your standard or 2d residences, they're investment residences. once you hire out materials you record the condominium earnings and expenses on schedule E. that includes the own loan activity and materials taxes on the condominium residences. you besides mght deduct coverage, condominium agent commissions, materials administration expenses (i beg you to get a materials supervisor in case you would be an absentee landlord, some jurisdictions require it), maintenance maintenance, depreciation, and so on. there is not any decrease on the style of condominium residences which you will have. i could urge you to seek for suggestion from with a community CPA or EA to get your bookkeeping set up good. Pay specific interest to the depreciation schedules! Depreciation is difficulty to recapture once you sell and blunders immediately can get very costly some years down the line once you sell. you besides mght choose for them to describe the passive loss undertaking regulations and the lively participation regulations. back, blunders here could be incredibly costly. Tip: booking the properly suited to approve all tenants and substantial expenses for maintenance meets the lively participation attempt in spite of in case you hire a materials supervisor. this could save you cash! you are able to document a joint return as quickly as you're married. you are able to record dissimilar condominium residences on a single schedule E. you will ought to apportion the own loan activity and materials taxes between Schedules A and E interior the year which you exchange the valuables to condominium use. the different expenses incurred in the previous the conversion are no longer deductible on the two schedule A or schedule E yet substantial maintenance or renovations must be considered in figuring your adjusted fee foundation. you besides mght ought to get a desirable appraisal from an approved genuine materials appraiser close to to the time which you exchange it to condominium use. (in case you exchange back to non-public use, get yet another one at that element besides.)

Answer 5

You're only allowed to claim what you've paid.

Did the bank split the loan? If not, how do you know who paid what?