My fiance pays my mortgage payment but the loan and house are in my name only. Can he claim the loan interest tax credit? If so how do I allow it? What forms do I need?
2007-05-28 08:51:07 · 6 answers · asked by onebigfool 3 in Business & Finance ➔ Taxes ➔ United States
He also lives here, so is it still a gift?
2007-05-28 15:37:40 · update #1
He lives in your house and pays the mortgage. Does he pay it directly or give you the money? If he gives you the money, and then you pay it, you can deduct the mortgage interest and property tax. He cannot deduct anything on the house since he does not own the property.
Do the amounts he pays cover his share of the housing expenses, including mortgage, taxes, utilities, repairs, food eaten at home? If so, then he is not gifting you any money, just sharing expenses. If he pays so much that he provides you with over half of your support, you may be his tax dependent.
To be practical, an engaged couple sharing expenses like this is not a taxable event in my opinion. Others may believe that rental income or a gift has been given to you, but I don't believe the IRS would consider that you are using your house for business purposes by letting your fiance live there and pay some of his and your expenses.
2007-05-28 19:19:04 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
From what you say, neither of you can claim the mortgage interest deduction. (It's not a credit, but a deduction.)
To claim the deduction, two conditions must be met. You must be legally obligated for the loan payments, and you must actually make the payments.
Your fiance isn't legally obligated for the payments, so he can't take the deduction. You didn't make the payments, so you can't take it either.
2007-05-28 10:07:27 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
In addition to the correct answers given by Judy (answer 1) and bostonianinmo (answer 3), your fiancee making payments on your house could be interpreted as a gift to you. If these gifts total more than $12,000 per year, his may be required to complete a gift tax return.
2007-05-28 13:16:08 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
expensive Dan: you do no longer qualify and in case you 2 are married she would be able to no longer get the credit. the only thank you to do the credit is for her to purchase the homestead in the past you marry. See IRS form 5405 instructions. this suggestion replaced into arranged in accordance with our understanding of the tax regulation in effect on the time it replaced into written because it applies to the info which you offered. click on my profile to envision greater. Errol Quinn Enrolled Agent grasp Tax consultant
2016-11-05 21:40:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, if he's not legally responsible for the payments, he can't claim it. It's a deduction, by the way, not a credit.
And if you aren't paying it, you can't legally claim it either.
2007-05-28 09:01:58 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
Give the circumstances that you describe he is making a gift to you each month and that is not deductible.
2007-05-28 09:55:20 · answer #6 · answered by ? 6 · 0⤊ 1⤋