Name on deed but not on mortgage. I pay part of the mortgage, can I claim part of the interest?

Forum|Forum|7 years ago
June 3, 2019
11 replies
82 views

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TurboTax Business Windows

Best answer by TaxGuyBill

Yes, you can deduct the interest that you pay because you own the property, even if you are not on the mortgage.

Regulation §1.163-1(b):

Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness.

https://www.law.cornell.edu/cfr/text/26/1.163-1

SweetieJean

Alumni - Champ

Do you live there? Ir is this a commercial property?

dydeanne55Author

Level 2

Yes live there and not commercial.

SweetieJean

Alumni - Champ

Ok, because you are asking from TT Business.

TaxGuyBillAnswer

Level 13

Yes, you can deduct the interest that you pay because you own the property, even if you are not on the mortgage.

Regulation §1.163-1(b):

https://www.law.cornell.edu/cfr/text/26/1.163-1

dydeanne55Author

Level 2

why is this a CFR and not an IRS rule?

CandyceCYBrown

Level 2

How do I claim interest if I cannot input information on 1098?

DianeW777

Level 15

No, not if you are not liable for the mortgage loan. You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that:

Makes your ownership in a qualified home security for payment of the debt;
Provides, in case of default, that your home could satisfy the debt; and
Is recorded or is otherwise perfected under any state or local law that applies.
- IRS Publication 936

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