I have lived in the house for several years and paid the mortgage for my family member but the loan is not in my name, can I write off this one despite the fact the actual loan is in their name as long as the family member okay's it.
2007-11-11 10:22:26 · 8 answers · asked by tkav 1 in Business & Finance ➔ Personal Finance
You have to both pay the interest and be liable for it to deduct it so neither you nor the homeowner can deduct it. If you gift them more than 12K per year you must file a gift tax return if it is rent they need to report the rental income.
2007-11-11 11:07:49 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
this is the reason I hate H&R Block. They gave you undesirable advice. as a fashion to deduct very own loan pastime you could desire to fulfill 2 regulations: a million. you're legally in charge for the very own loan debt 2. you are the guy fairly paying the very own loan money. on your case, your stay-in lady buddy would not meet the 1st rule, so she will't deduct it. you do no longer meet the 2d rule, so which you will no longer deduct it. consequently this may be a style of circumstances the place no person gets to deduct the very own loan pastime. If the 1099-INT that the economic corporation sent you had your call purely on it, then purely you ought to use it to deduct very own loan pastime. Time to call H&R Block and take income of that accuracy assure. if your lady buddy submitted precise information to H&R and that they filed inaccurately, then they could desire to cover effects and pastime yet she will nevertheless owe the fairly tax element to the debt.
2016-11-11 04:28:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hell no. Do you want to get audited? If the bank isn't sending you that statement every year telling you how much interest you've paid and can deduct on you taxes, you have no business taking an interest deduction.
2007-11-11 11:49:33 · answer #3 · answered by truttman 3 · 0⤊ 0⤋
Legally the title has to be in your name. The family member could write it off and give you the money. Don't count on that happenin though.
2007-11-11 10:31:03 · answer #4 · answered by mamapoulette 4 · 0⤊ 0⤋
Technically and legally you can't. The likelyhood of you getting audited is low, unless you make an obscene amount of money. If you do get caught, and you can prove that you make the payments, you can probably get away with it. The worst that can happen is that you pay the difference. Just claim ignorance.
2007-11-11 10:27:08 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Yes, you can write off the mortgage interest. Keep your proof of payments in case of audit! Get a QUIT CLAIM or You can get a wraparound loan/just by going thru escrow-in CA!! Anyhow, you can claim it on Form 1040 schedule A.....tell your tax preparer.. !
2007-11-11 10:32:30 · answer #6 · answered by trop 4 · 0⤊ 3⤋
no and they should be claiming the income of you paying the mortgage on their taxes or it is a form of tax evation
2007-11-11 10:34:44 · answer #7 · answered by Princess 3 · 1⤊ 0⤋
No. You must be legally liable for the mortgage to take the interest deduction.
2007-11-11 10:50:20 · answer #8 · answered by Wayne Z 7 · 2⤊ 3⤋