How would the interest deduction being treated at the end of each year if a father and a son buying a house together, and both are on the loan together, when the father already owns another house as primary home? They won't be filing taxes jointly. So since they will be filling out a tax crediting form (1098 or 1099?) at closing, would the interest deduction be split down the middle?
2007-06-21 21:07:26 · 3 answers · asked by robert w 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you're both on the loan, you can split the deduction. Interest is deductible on a primary and second home so the father should be OK if he doesn't already own a second home.
There's only one SSN on the 1098. That person should attach a statement to their return listing the name and SSN of the other party sharing the deduction along with the amounts. The other party would attach a similar statement referencing the first party's information.
2007-06-22 00:39:47 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
The person who pays the payment gets the deduction, if they itemize. If they split the payment, then they could split the interest deduction.
Note that unless it's a primary home or secondary home for both people, it's not deductible for the person for whom it's not a primary or secondary home.
They don't fill out a 1098, the lender will send it to them.
2007-06-22 10:14:21 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
if u are taking the loan to buy the house.
then u will get the deduction of 1.5lacs per year to pay the money to the bank.
i mean 1.5 lacs will be deducted from your taxable income so that u can pay dat money to the bank for the loan u taken.
and the tax will be levied on the left amount.
2007-06-22 04:14:02 · answer #3 · answered by Anonymous · 0⤊ 1⤋