Hi Michelle. Because you own the home jointly and I assume you contribute to the mortgage payments, you'd be able to split the interest deduction with your partner. You do not have to actually be on the mortgage for this purpose. As an aside, Form 1098, which reports mortgage interest paid to IRS, generally only lists one social security number anyway.

I hope this helps. Please let me know if you need any other assistance.

Harry

Zip Code: 11797

Quick question, but tough response.

When I first saw Harry's response, I did some poking around on the IRS' website, and came accross this:

Generally, you can deduct only taxes that are imposed on you. You cannot deduct the property taxes unless you are the legal owner of the property, nor the mortgage interest unless you are legally liable for the loan. For more information, refer to Publication 936, Home Mortgage Interest Deduction.


I interpreted that to mean that you need to be on the mortgage to claim the deduction. I e-mailed Harry, and he sent me this:


(c)Who Is Entitled to the Deduction?

Only a taxpayer who is liable for an indebtedness may deduct interest payments. Arcade Realty Co. v. Commissioner, 35 T.C. 256 (1960), acq., 1961-2 C.B. 3. However, the legal or equitable owner of real estate encumbered by a mortgage or deed of trust may deduct interest even though there is no personal liability (e.g., when the taxpayer's property is
serving as collateral security for someone else's indebtedness). [30]

The equitable owner of a personal residence can deduct the interest on the mortgage payments if he is obligated to the legal owner of the residence to make the payments. For example, when a taxpayer's poor credit rating barred him from obtaining a mortgage, and his brother purchased the home and allowed him and his family to live in it, the taxpayer was held to be entitled to the interest deduction, because he was the equitable owner of the residence because he was required to make the mortgage payments to the
bank. Usher v. Commissioner, T.C. Memo. 1997-551.

PRACTICE TIP: This should enable a son or daughter whose parents purchase a house for them to deduct the interest payments where they are responsible for making the mortgage payments directly to the bank.



As I said - quick question, but a tough response.

Zip Code: 01801