Assuming that you're both on the loan and the deed, you can split it any way you wish.
Do keep in mind that you'll each need enough in itemized deductions to exceed your standard deduction to get any benefit at all. The standard deduction for a Single filer is $5,350 for 2007. If the combined mortgage interest and real estate taxes (assuming no other itemized deductions) are less than $10,700 neither of you will get any benefit from splitting the deductions.
A better way to proceed would be to figure your returns several ways -- splitting the expenses and each of you claiming the whole thing -- and see which way results in the lowest combined tax bill between you. Then file that way.
2007-05-31 03:00:31
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answer #1
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answered by Bostonian In MO 7
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You can only deduct the mortgage interest on the house if you are able to itemize deductions. Another thing you need to look at is this: On the 1099 mortgage interest statement, who's social security number is on it? If it's his then that could potentially be a problem (very unlikely) for you if you show that you are deducting mortgage interest but nothing on the 1099 statement refers to your name or social security number.
Here is another tip for tax planning: This depends on how disparate your income is from his. It's possible that one of you might benefit much more by deducting the entire mortgage instead of splitting it. Also, don't forget that the real property tax you pay on the house is also an itemized deduction. Same with your car; if you pay personal property tax on the vehicle, you can itemize that as well. Hope this helps
2007-05-31 03:05:20
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answer #2
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answered by michael s 2
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I would guess that you're right about the half each. I currently own a rental property with two other people and we split the income that we receive throughout the year into 3.(so the amount we pay tax on is one third of the aggregate--as well as all the expenses paid: tax, maintenance fee, etc). Since you can't benefit from the marriage tax cuts, I think it would just be as if you owned half of a house.
Best to check with a good accountant though. Hope this helps!
2007-05-31 02:53:57
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answer #3
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answered by Anonymous
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Assuming that both individuals itemize their deductions as mentioned by the others, it depends.
Are both of their names on the settlement documents? If they have something showing that there is a joint interest in the property, they can split both property taxes and mortgage interest 1/2 each regardless of whose name is on the mortgage.
If only one of their names are on the settlement documents, only that person can legally claim the deduction for 1/2 of their share of the property taxes.
If both names are on the mortgage, they can split the interest deduction 1/2 each, otherwise unless the other person's name is also on the purchase documents, then only one may take the deduction.
2007-05-31 03:09:51
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answer #4
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answered by starlight_chic06 3
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RE :Unmarried couple bought a house. What is the best way to handle the TAX filing?
Unmarried couple bought a house this year and each paying half of the mortgage (property tax included in the loan).
What is the best way to do for income tax filing next year so both of them will benefit from the tax deductions or possible refunds from this house?
Since they are unmarried, each will be filing as SINGLE. Can each put on their Tax returns the amount they paid/shared on the mortgage (half each)?
Update: Addendum:
Both of our names are on the loan and deed. Both of us are qualified to itemize deductions (since each of us has our own properties too)
Follow 9 answers
2016-11-09 03:37:34
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answer #5
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answered by ? 6
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Your situation is like you and a friend purchased a property together. Check with a Tax Accountant in refer to what each of you can deduct. Are both of your names on the property deed? Do you both have your proof of your portion of the payments?
This is the time of the year to check with a professional just in case you need to change something before the year is over.
2007-05-31 02:55:39
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answer #6
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answered by D S 4
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Technically, you both can claim deductions since you both liable for the mortgage(I assume it) and you pay it. What I would do, i would find out scenarios if one of you claimed all of the deduction(itemize deductions) and the other would claim a standard deduction or the other scenario if both of you itemize. You will see and compare differences. If you you find than it's better itemize only for one, than I would advice that only one person pays mortgage, the other one can reimburse the person paying mortgage. This way you will both benefit
2007-05-31 06:32:03
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answer #7
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answered by alikmal 2
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If both are listed on the mortgage and they are splitting the payments, then they can each take half of the interest and real estate taxes if they itemize.
2007-05-31 03:01:52
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answer #8
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answered by Judy 7
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do not purchase a house with this guy. i offered a house with my better half, and we are actually not married. whether, we the two contributed to the deposit, and are the two on the call and the loan. we are in this at the same time, whether we lease the living house out after some years. My element to the deposit became into far greater advantageous than his, yet that doesn't replace something. We proportion the duty the two and we are the two legally answerable for the deepest loan. we are in it at the same time. you're actually not in an identical subject. you isn't on the call, and you isn't on the loan workplace work. so which you're actually not area of the deal. that's not precise. you're able to desire to tell him you're actually not waiting to purchase the living house precise now until you have saved somewhat for the deposit and have repaired your credit somewhat. If he does not desire you on the workplace work, what long term plans does he have for you? It sounds very dodgy to me. I propose, you're able to nevertheless be contributing in the direction of the loan, even nevertheless you're actually not on the workplace work. that's not honest. you're able to to boot stay someplace else and pay lease, in case you're actually not likely to be area proprietor of the valuables. I say cringe on the assumption. do not bypass down this direction. tell him to attend until you're in a topic the place you're able to make contributions, so which you're able to be on the books legally. it is going to likely be properly worth it in case you wreck up. remember, there's a marginally super age hollow between you, and human beings replace as they mature. In some years, this guy could not be the guy you theory he became into. I say your gut feeling is robust. Say no and stroll away. If he needs to purchase the living house, do not make contributions to the loan, yet stash you income a mark downs account and investments particularly. you are able to desire to shelter your self. He could desire to appreciate that. this could be a brilliant serious warning call that possibly you're able to desire to not be with this guy. you're actually not a unfastened lunch. Your funds are basically as important as his are. perfect needs
2016-10-30 08:06:26
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answer #9
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answered by shoe 4
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1/2 each
2007-05-31 02:49:15
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answer #10
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answered by skcs11 7
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