Interest expense for part home owner?

Question

I am a part owner (50%) of a house of a house but I am not on the loan. Can I use the interest expense from the loan on my tax return?

Answer 1

In most cases the answer is NO! However there was a tax court case a number of years ago that would allow it under rather narrow circumstances.
If you are on the title for the property for a percentage of the ownership and you pay some part of the payment for a loan (not in you name) on that property you may take the interest portion of those payments as a deduction. The ruling seemed to say that you are obligated if you are on title because you will lose the property if the loan is not paid. You would be limited to the part you paid not the percentage of ownership.

Answer 2

No you may not. To claim the mortgage interest deduction my must be legally obligated for the payments and must actually make the payments.

As you are on the deed as 50% owner you CAN deduct your share of any property taxes that you paid if you itemize. However if that's your only deduction it's probalby not enough to be worth itemizing.

Answer 3

And, if you paid 50% of the mortgage payment, the other owner can't deduct the interest either since they didn't pay it.

You must both owe the money and make the payments in order to qualify for the deduction.

Answer 4

If you are not on the loan, then no, you can't claim the interest as a deduction even if you pay it. You could only claim it if you were legally obligated to pay it, and since you aren't on the loan, you aren't legally obligated.

Answer 5

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