My father and I have purchuse a Condo, I am living in it and pay part of the loan. I am on the title but not on the loan because of credit issues. Can I deduct some of the intrest on the loan?
2007-05-13 04:08:24 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes!
There is a possibility you may be able to deduct the interest paid on the mortgage. The question becomes who are you making your payments to, and are they consistent? If you can document that you are making the same payment every month then you may be eligible to claim the portion of interest you paid. If you give your father cash it may not be deductible. Please consult a tax advisor in your area for your particular situation.
2007-05-13 05:53:29 · answer #1 · answered by mrdankeschoen 2 · 0⤊ 1⤋
No, you cannot. In order to deduct the interest you must be legally obligated for the loan AND you must actually pay the interest. If your name isn't on the loan you are not legally obligated for it and therefore CANNOT deduct any interest. Your father cannot deduct the interest that you pay, since he did not pay it.
2007-05-14 04:28:49 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
no
the interest paid is reported to IRS by the bank on the social security number on the loan. That number is your dad's and the bank sends him a form showing how much interest he has paid.
2007-05-13 04:11:46 · answer #3 · answered by Jo Blo 6 · 0⤊ 0⤋