My father passed away a few years ago. Since then, I've been paying for my mother's mortgage and property tax. My mom's yearly income is less than the sum of her property related payments.
To obtain a tax credit for the interest on the mortgage and property tax, should I refinance and add my self to the loan? Or can I just do a quick claim deed? I'm looking for the simplest and more affordable method.
2007-06-11 14:06:53 · 3 answers · asked by cardobenavid 1 in Business & Finance ➔ Taxes ➔ United States
Your mother will have to sell you the home for you to be able to encumber it with a mortgage yourself. You have no legal basis to mortgate property that you don't own.
And there's no such thing as a "quick claim deed". The term is quitclaim deed. And no, YOU can't quitclaim your mother's home to yourself.
2007-06-11 15:58:10 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
A quit claim (not "quick claim) could put you on the title, but wouldn't change the mortgage. To be able to deduct the mortgage interest, you'd have to be on the mortgage.
You don't say whether you live there or not. Interest can only be deducted for a mortgage on a qualified home, which means your main or second home.
You might or might not be able to claim your mom as a dependent on your taxes. And if you can and are filing as single, you can probably file as head of household instead.
Good luck.
2007-06-11 15:25:42 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You must be on the loan or title to receive the deduction for those payments. You may want to get on title if you mother is likely to pass in the next few years to avoid probate issues.
2007-06-11 14:35:25 · answer #3 · answered by ? 6 · 0⤊ 1⤋