Net Advisor
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It is my understanding that whoever has their SS# on the loan doc will be the one who can write off the interest as permitted.
"You must file Form 1040 and itemize deductions on Schedule A (Form 1040).
You must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them. Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.
The mortgage must be a secured debt on a qualified home.
--Source: IRS Publication 936 "
http://taxes.about.com/od/deductionscredits/a/MortgageDeduct.htm
Disclaimer:
I am not a tax advisor. The information contained hereto are from sources deemed reliable. Their accuracy or completeness is not guaranteed. Always refer to a CPA for any tax questions. |
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brianjames04
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You both can't claim the full amount. Either you both take half the amount as a deduction or you both work out who gets what fraction of the deduction. Say that you pay 80% of the mortgage then you should be entitled to 80% of the deduction. |
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Smalls
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I would think only one of you could claim the money because if you both do then if is as if it is twice the amount... |
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phoenixellen
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In order to claim mortgage interest as a deduction on your tax return, the law says:
(1) you must be legally liable, and
(2) you must pay it.
Since you are both legally liable, whomever PAYS the interest gets the deduction.
The form 1099 is in your SSN so it is reported to the IRS as being paid by you. If, in actuality, your sister pays HALF the mortgage payment, as long as she can substantiate (by check, for example) that she made the payment, she can claim half the interest and you (assuming you paid the other half) can claim half. |
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quantumrift
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No, the both of you cannot 'double-claim' the mortgage. That's a red flag to the IRS that says "AUDIT ME".
Talk to a tax accountant, but you can probably FILE the intereset on ONE return, then split any refund.
I doubt it would pay to try to claim half the interest either as only half of the interest on each of your returns probably won't garner you much of a refund.
---> Look up a good tax accountant (not H&R Schlock, etc) in your area and ask them. |
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James
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If it's your SSN on the loan then it should be you.. by that I mean if you are the primary borrower, However if she is also on the loan as a Co-borrower and she made all the payments then she should get to claim it... so really it just depends... but pretty much you guys should just decide between each other and split it or whatever...
just remember normally it's who ever made the payments gets to claim..(if they are on the loan)
but if push comes to shove then just walk into a H&R block and ask them...
Hope this helps |
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RJR
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Bethie-this is serious stuff. Don't trust your finances to advice you get here. Go see a tax professional. Advice you get here is not worth the risk of IRS penalties. At least if you see a tax professional, he's got to sign his name and accept some responsibility for his advice.
Good Luck Darling!~ |
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linda w
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U R the only one that can claim interest. |
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Internet Troll
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Be fair split it with her |
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Sahara
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As I understand it and I'm not a CPA nor do I know anything else about your financial situation that only one of you can claim the interest on the mortgage loan and that would be you because your SSN is tied to the mortgage. In this situation it might be wise to have a CPA file your return and then you can see how he or she did it. You can ask them this question. You both need to file. Since you are sisters then you cannot file jointly. |
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Steve W
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You are both on the loan paying interest, so YES |
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