If your name is on the deed and you actually paid the mortgage, then yes you can deduct mortgage interest even if your name is not on the mortgage.
The rule of equitable ownership provides that even if a taxpayer is not directly liable on a bond or note secured by a mortgage, the taxpayer may nevertheless deduct the mortgage interest paid if he or she is the legal or equitable owner of the property subject to the mortgage.
In certain cases, you don't even need to be on the deed. If the taxpayer is not the legal owner of the residence but can demonstrate “equitable ownership,” he or she will be entitled to the mortgage interest deduction. In Uslu , T.C. Memo. 1997-551, the Tax Court held that, because the taxpayers were able to prove that they had the benefits and burdens of ownership of a residence, they were the equitable owners of the residence and therefore under Regs. Sec. 1.163-1(b) were entitled to the mortgage interest deduction.
You can also deduct property taxes that you actually paid.
Edited on 02/13/23 | 10:42 AM
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