A. Yes, it would matter. You haven's really paid it. You have to arrange your finances so that you pay it. For a simplistic example, you pay the mortgage, they buy the groceries.
Q. Ok, firstly do you think the IRS would care so much so long as we’re both not claiming it?
A. No. You would claim half the limit.
Q, Right but I’m talking about both of us together. There’s a limit of 750K on the mortgage. If we each claim 50/50 of the interest deduction will we get all the E interest back on our 810K mortgage or would it still be based on 750K? I thought the latter.
A. You can't split the 1098. One of you would have to claim the deduction without a 1098.
Q. Right, I mean how would we do it if we were splitting the deduction 50/50? Would we both fill in a 1098? And would we put half the mortgage value (410K) and half the interest? Or would we put the full mortgage amount (820K) and our half of the interest?
Thanks!
