I am single and I bought a house with my boyfriend. We are both paying for the mortgage and have our names on the loan. My question is how to split the interest. There are two ways to calculate and I am not sure which one is the right way. Let's say the loan is $1.3M and we paid $50K as interest.
Approach 1: $750K/$1.3M*$50K = $28,846. Then each of us can claim half of this, so $14K for each.
Approach 2: split the 1098 into two, each of us would have $650K as the mortgage amount and have paid $25K on the interest. With an individual cap of $750K, we would be able to claim $25K each on the interest.
Would really appreciate if anyone can help!!
