Posted on: 05th Feb, 2010 04:38 pm
I have been living in a townhome for 2 years 4 months. In spring 2009, the home was deeded to me and filed at the court house. The mortgage is in the original homeowners' name, but they have not paid any of it since I moved in over 2 years ago. I have paid the mortgage, interest, mortage insurance, and taxes all this time. Can I claim the taxes and/or interest on my taxes since the home is deeded to me?
>>Can I claim the taxes and/or interest on my taxes since the home is deeded to me?
No, not because its been deeded to you, but you can claim the write-off if you're able to prove (usually with cancelled checks) you've paid for all those items.
No, not because its been deeded to you, but you can claim the write-off if you're able to prove (usually with cancelled checks) you've paid for all those items.
Thank you Raymond. I have paid the mortgage, mortgage insurance & interest, & taxes for the past 2 yrs & 4 months. So, since I can prove it with cancelled checks, I can write it off?
Yes, you're entitled to write it off. However, the twist is the 1099 isn't in your name, so it's best for you to let the person whose name is on the 1099 know you're taking the tax benefit. If you both take it, and the IRS audits, you'll be the one who wins because you have the cancelled checks to prove you're the one who made the payments.
Sorry to bring up an arguement here, but it is my belief that if the debt is not in your name, you cannot deduct the interest.
To deduct mortgage interest, you must be legally liable to pay back the loan. If you did not co-sign as a borrower on the mortgage loan and simply make payments on it on behalf of someone else, you get no deduction.
Joni M. Becker, CPA - The Tax Tutor dot com
To deduct mortgage interest, you must be legally liable to pay back the loan. If you did not co-sign as a borrower on the mortgage loan and simply make payments on it on behalf of someone else, you get no deduction.
Joni M. Becker, CPA - The Tax Tutor dot com
as far as the lender is concerned, the person on the note is responsible for paying it back. as far as the irs is concerned, the party who actually paid the interest is entitled to the deduction.
my sons mother died and he inherited her estate, including her condo. he was only 18 so he couldn't refinance it into his own name, but he paid the monthly mortgage payment for 5 years and also used the associated tax deduction. he wouldn't have been able to do that if it worked as your suggested.
my sons mother died and he inherited her estate, including her condo. he was only 18 so he couldn't refinance it into his own name, but he paid the monthly mortgage payment for 5 years and also used the associated tax deduction. he wouldn't have been able to do that if it worked as your suggested.