If I had proof that I've been paying the mortgage and my name
is on the title, can I claim interest deduction on my 1040
under "interest not reported on 1099".
2007-11-13 04:26:40 · 5 answers · asked by huy mai 2 in Business & Finance ➔ Taxes ➔ United States
Typically, you can only claim mortgage interest on homes that you live in, so, no.
However, if you choose to add your name to the title and call your daughter's house 'rental property', then you would be able to deduct it on the Schedule E (which is just another form to attach to your regular tax return showing any income or deductions for the rental).
Just FYI, in the event you are living in a home and paying a mortgage that is not in your name, you do not have to add your name to the title or the mortgage in order to claim the mortgage interest deduction. You simply do the Schedule A like normal, including the interest. You then attach a statement of variance to the return explaining why you have a deduction but no paperwork with your name on it. Then, the person who does have their name on the 1098 had better not report it, or both of you will have your returns called into question.
Hope that helps! Have a blessed day!
2007-11-13 05:41:06 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
No, you may not claim the interest deduction, nor can your daughter. One may one claim an interest deduction on a home if one is obligated to pay the interest by contract, and if the person actually pays the interest. You, by not being on the mortgage document, are not obligated to pay the interest. Your daughter is obligated to pay it, and she has not paid it. YOU have.
In order to get any sort of deduction, you will have to find a way to make yourself legally liable for payment of the interest.
From the IRS...."For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. "
2007-11-13 06:30:19 · answer #2 · answered by acermill 7 · 0⤊ 1⤋
Not if you just add your name to the title. If you are on the MORTGAGE then you'd be legally obligated to pay it, so could deduct it as mortgage interest. If you aren't on the mortgage, you can't deduct it.
2007-11-13 04:37:24 · answer #3 · answered by Judy 7 · 1⤊ 1⤋
Are you ready to take over her payments as well? Maybe she needs less of a house, one that your daugther can afford.
2007-11-14 23:55:25 · answer #4 · answered by Gary 5 · 0⤊ 0⤋
I believe so, but look on the IRS website to make sure.
2007-11-13 04:29:34 · answer #5 · answered by Ann D 3 · 0⤊ 2⤋