Quit Claim?

Question

If my mother adds me by Quit Claim, can i use that to report the taxes for teh interest paid?? She is teh only one on the loan, but ive been told by numerous sources that all i need to do to report teh taxes is to be added to title?? is this true??

I am the one making the payments and im going to be added to teh title but im not on the loan?

Answer 1

You can get on the title if you like, but the person who makes the payments claims the deduction.

Answer 2

Claiming the interest is a twofold test:

1) You have to actually make the payments.

2) You have to be legally obligated to make the payments.

If you are not named in the mortage, you can not take the deduction for the interest payments.

Edit: If you are making the payments but are not on the mortgage, you can not take the deduction for the interest.

Answer 3

Not true. Even if you are the one actually making the payments, you can't deduct the interest unless you are legally obligated to pay it - so you'd have to be on the loan, not just on the title.

Answer 4

If you are added to the title as a co-owner, you would still only be able to deduct your half of the deductible expenses. And then only the half since the title was changed.

If your half is worth more than $12,000, your mother would have to file a gift tax return (in all likelihood she wouldn't have to pay any taxes). When the house is sold your basis in the house will be half of what the basis was at the time of the gift.

Answer 5

Unless your name is on the mortgage, you can not claim the intersest paid on the mortgage. By being quit claimed to the deed, you will be able to claim the property taxes that are paid.