My fiance is on the only one on the mortgage deed but we both pay for it? Would I file as if I am paying rent?

[Howard1948 · Accepted solution]

If you are not on either the deed or the mortgage, you cannot take a deduction for paying interest or property taxes on the property.  As you note, you would treat your payments as rent.  And your fiancé may have to include it as rental income on her return.

[Hal_Al]

For tax purposes, your fiance should not treat the payments as rent. At worst you are only roommates sharing expenses. Due to the engagement, you a "family" sharing expenses and that makes it even less likely that you have an actual rental situation.

If this is merely a cost sharing arrangement where the amount paid is below fair market rental, there would be no reportable income to you. If the “rent” amount is fair market value, or more, there is still some question as to whether you even have to report it, as it almost always comes out zero. Most people take the attitude that it is not income; it's just room mates sharing expenses and ignore it. Family, as opposed to unrelated roommates, makes that position stronger.

Even if it is reported as rent; what you are NOT allowed to do, because it is your own home (you have "personal use") is claim a loss from this activity, to offset other income. Because of the "personal use rule", your deductions are limited to your income. Net effect ZERO.

[ce090111]

So what Hal_Al is saying is not to claim that I pay rent? I'm not even sure if this is a question when filing taxes I just want to be prepared. If it has to be him claiming the house all together without reporting that I pay half of the mortgage it would be fine since we have a joint account anyway.

[Hal_Al]

1. Correct, You do not report that you "pay rent". You are correct that there is no where to show that on the federal tax forms. Some states have a rent credit, but I doubt that you would qualify.
2. It has to be only him claiming the mortgage & real estate tax deductions.
3. He does not report rent income or expenses