Deductions & credits

Do you have an ownership interest in the property?  Is your name on the deed?  Will it be on the deed upon fully satisfying the 22 years of payments?  Is this some kind of cooperative housing arrangement?

IRS Publication 936 Home Mortgage Interest Deduction states:

You can deduct home mortgage interest if all the following conditions are met.

• You file Form 1040 or 1040-SR and itemize deductions on Schedule A (Form 1040 or 1040-SR).
• The mortgage is a secured debt on a qualified home in which you have an ownership interest.

Secured Debt and Qualified Home are defined here..

Secured Debt

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.

Qualified Home

For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.