Co-borrowed on mortgage; other borrower in higher tax bracket. How to make sure he takes 100% of deduction?

Question

My boyfriend and I just bought a condo; we co-borrowed on the mortgage. We'll be filing taxes separately. He's in a higher tax bracket, so it would make sense for him to take the entire mortgage interest deduction since he will get more back than I would. How do we make sure that can happen?

I have heard different things about what we should do. For example, I have heard that the paper trail for the mortgage payment should always be traceable back to him and him alone (e.g., the checks should come from an account that only has his name attached to it). I have also heard that we can take that route, but that I can actually pay the principal amount out of my funds so long as he pays the interest amount out of his funds. And I have heard that we don't have to go through any of this trouble; that as long we don't both try to take the entire interest deduction, it's fine however we split it.

Does anyone know for sure? Is there a source with a definitive answer?

Answer 1

If you're both on the loan you can split it any way you wish. If his SSN is on the Form 1098 from the mortgage company, no further action on either of your parts is required. If you are splitting the payments, give him your share and let him cut the check for the payment.

Answer 2

Legally what he is supposed to do to take 100% of the mortgage interest deduction is to pay 100% of the mortgage payment. In reality though, the irs will not find out if you each pay 50% of the mortgage payment and he claims 100% of the payments.

Answer 3

You both get a total interest deduction that either is on a joint return or split. You can simply not take the deduction and allow him to take all of it. You don't need to change the way you make your mortgage payments, just don't take an interest write off on your return.