Can I deduct money from an IRA that I used as a home purchase down payment? I am not the primary owner and I will not be claiming the house on my return.

Forum|Forum|7 years ago
June 6, 2019
6 replies
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TurboTax Deluxe Online

Irene2805

Level 15

You cannot deduct the IRA distribution used as a down payment for a home.

HOWEVER, if you are younger than 59-1/2 there is an exception to the 10% withdrawal penalty for first-time home purchases (no home ownership in prior two years). This exception is limited to $10,000.

After the entry screen for the 1099-R you will eventually see a screen, Did you use your IRA to pay for any of these expenses? Enter the amount of the distribution you used for a down payment in the box, First home purchase. [See Screenshot #1, below.]

katie-sichauAuthor

Level 2

Ok thank you. I am younger than 591/2 and it is a first home purchase. the concern is that I am not the primary home owner. I am on the deed and pay 1/2 the mortgage but we got a better interest rate if my fiancée was the primary. I will not be claiming the house or house interest on my return. Can I still deduct the 10k?

DrDreb

Level 2

No seeing this question after entering 1099-R

MaryK4

Level 15

After you enter the 1099-R, look for a screen that says "Your 1099-R Entries- keep going through if you have several qualified disaster questions- then look for "Let's See If We Can Lower Your Tax Bill"-- the nest page is where you can enter the First home purchase.

@DrDreb

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