You are able to deduct your portion of the mortgage interest and property tax you actually paid—even though your name is not on the mortgage or deed—under the “Equitable Ownership” principal. Equitable ownership means that you enjoy the same burdens and benefits as the owner of the property because you live there and pay your portion of the mortgage and taxes.
Regulation § 1.163-1(b) notes: 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.
Also refer to Uslu v. Commissioner, TC Memo 1997-551
Also refer to the answer by Alumni Champ @bwa to Living in home owned by family trust in CA. I pay the property tax, is that deductible?
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