Claiming mortgage deduction, but name not on tax form. Will this trigger audit?

[krave13]

My husband and I bought a house this year and used my in-laws as co-borrowers. The in-laws are listed as the first two people on the loan, so our tax form shows their names and my father-in-law's tax ID. It does not show any of my information. Other than their names on the loan, they have no involvement in the house. My husband and I pay the mortgage, our names are on the only ones on property deed, etc. My question is, if we claim the mortgage deduction will that trigger a red flag for the IRS since there's nothing on the tax form to indicate it's ours to claim? Is there some other documentation we should include to demonstrate that I am the third borrower on the loan and an owner of the home?

[GeorgeDenseff]

There is no documentation that you need to send with your taxes.  You do need to have good records that you can produce in case there are any questions.

[krave13]

Isn't it almost for certain there will be questions then? I'm providing a document that doesn't have my name on it and making a claim against it... 

Will I just have to sit on pins and needles every year waiting to see if I get a letter from the IRS or is there some way to head that off by clarifying ahead of time?

[Opus 17]

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@krave13 wrote:

Isn't it almost for certain there will be questions then? I'm providing a document that doesn't have my name on it and making a claim against it... 

Will I just have to sit on pins and needles every year waiting to see if I get a letter from the IRS or is there some way to head that off by clarifying ahead of time?

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There's  no way to know whether the IRS will pick you for verification.  The good news (or at least calming news) is that most of the time, the IRS will send a letter asking for additional documents, and when you respond with your documents and a letter, the matter is closed.  Actual audits are extremely rare.

There are a couple of things that will always trigger a letter from the IRS, like forgetting to include a W-2 or 1099-MISC for income.  Having a mortgage where you are not the first-named borrower is not one of the things guaranteed to trigger a letter, and we can't really suggest what percentage of the time the IRS might ask for more proof.  Sorry.