Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Pioneer
Posts: 1
Registered: ‎09-12-2017

Mortgage interest

Can a person who is on the deed of a home as co-owner, but not on the mortgage loan, claim the mortgage interest expense on his tax return. The co-owners do not file jointly as they are not a couple .

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Tax Pro
Posts: 5,536
Registered: ‎02-23-2016

Re: Mortgage interest

Hi Assaz1,

 

 

Welcome to the H&R Block community.

 

The specific rules for the mortgage interest deduction are that you must (1) legally own the home, (2) maintain the home either as your primary residence that you live in regularly or as a secondary residence that you lived in at some point during the year, and (3) you must be responsible for the mortgage, and (4) you must have paid the mortgage interest out of your own funds.  If you meet all four of these criteria then you can deduct the mortgage interest that you paid.  Because you are not responsible for the mortgage you cannot deduct interest for someone else's mortgage.

 

If the other person to whom you referred was the person who actually paid the mortgage then he or she is the only party who can deduct the interest provided that he or she meets the other three of the above criteria.

 

There are also situations on this topic where neither party can deduct the interest, such as when a parent legally owns the home but their son or daughter lives in the home as their primary residence and pays all of the mortgage expenses.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)