Posted on: 27th Jan, 2008 12:14 pm
here is my situation. my parents own a house and the mortgage is under their names. they have VERY low income so every year at tax time i itemize the mortgage interest and get a huge tax refund as a result even tho the mortgage is in their names. Now my dilemma is this...i plan to buy my own house with the mortgage in my own name. can i itemize the mortgage interest from both properties and get an even HUGER refund?
Hi Micksean,
Welcome to the forums.
Since your parents own the home and have their names on the loan, they should itemize the interest. That's how it works. But I'm not sure as to how you are able to deduct taxes on the interest.
As far as deductions on the interest from both properties are concerned, that can be done provided you own both the homes and have your name on both the loans.
Take Care
Welcome to the forums.
Since your parents own the home and have their names on the loan, they should itemize the interest. That's how it works. But I'm not sure as to how you are able to deduct taxes on the interest.
As far as deductions on the interest from both properties are concerned, that can be done provided you own both the homes and have your name on both the loans.
Take Care
Welcome to the forum micksean,
The interest is being reported to your parents so I am confused as to how you have been able to claim the deduction.
As Sara noted, you should be able to claim the interest on both homes provided the mortgages are in your name. If your name is not on the mortgage, you should not be able to claim that interest.
In a nutshell, whomever receives the 1099 from the lender is the person who can claim the deduction.
The interest is being reported to your parents so I am confused as to how you have been able to claim the deduction.
As Sara noted, you should be able to claim the interest on both homes provided the mortgages are in your name. If your name is not on the mortgage, you should not be able to claim that interest.
In a nutshell, whomever receives the 1099 from the lender is the person who can claim the deduction.
You cannot claim mortgage interest deductions unless you are the owner of the property and liable for the mortgage. It seems you are wrongfully taking the mortgage interest deduction on your parents house.
I pay the mortgage for my elderly mother which is well over 50% of her upkeep. Can i claim the mortgage interest on my tax return?
Hi Neal,
If the property and the mortgage is in your name, then you would be able to claim mortgage interest deductions on your tax returns. If the mortgage and the property are in your mother's name, you won't be able to claim the deductions on your tax returns.
If the property and the mortgage is in your name, then you would be able to claim mortgage interest deductions on your tax returns. If the mortgage and the property are in your mother's name, you won't be able to claim the deductions on your tax returns.
If the mortgage is not in yoru name then you cannot deduct
mortage is in my name. can i count my mortgage payments, interest, and homeowners ins. all of this on my taxes.
Hi Susie,
The interest you pay on your mortgage is tax-deductible. The homeowner's mortgage insurance that you pay to secure your lender's interest can also be deducted from your taxes. If the mortgage is in your name, you can definitely claim these deductions on your taxes. If your name is on the title to the property, you can also deduct the real estate taxes. If you pay the property taxes and the insurance through an escrow account, you will get the actual amount of those payments from the annual mortgage statement sent to you by your lender.
Thanks,
Jerry
The interest you pay on your mortgage is tax-deductible. The homeowner's mortgage insurance that you pay to secure your lender's interest can also be deducted from your taxes. If the mortgage is in your name, you can definitely claim these deductions on your taxes. If your name is on the title to the property, you can also deduct the real estate taxes. If you pay the property taxes and the insurance through an escrow account, you will get the actual amount of those payments from the annual mortgage statement sent to you by your lender.
Thanks,
Jerry
correction: what you pay in hazard insurance premiums is not a deductible expense on your taxes.
as for the real estate taxes and interest paid, you may, indeed, itemize those amounts (if itemization works for you) and get the benefit when you file your irs return.
as for the real estate taxes and interest paid, you may, indeed, itemize those amounts (if itemization works for you) and get the benefit when you file your irs return.
I'd be interested in Neal's situation. I have heard of this before. Claiming a parent as a dependent and thus being able to claim the mortgage interest on that parent's house. And if this ispossiblem, what if the child is living there? Does there have to be some sort of offset for the value of the unpaid rent?
tax questions are for the irs or qualified tax advisors, frankly. we who like to answer all these questions on this site are well-advised to defer to the experts in cases like this.