Can my boyfriend claim my 1098 mortgage interest statement if his name isn't on the loan but he pays it?

[burrowsandrea17]

I am a stay at home mom. I purchased the home in 2019 and my boyfriend works and pays the mortgage but it isn't in his name can he still put the 1098 on his taxes

[Opus 17]

No, he would have to be one of the borrowers obligated to the pay the interest.  And he has to be an owner to deduct the property taxes.

Possibly, you could get away with calling the mortgage payment a gift from him to you and you take the deduction.  But this is iffy.  It would be better if he actually gave you money and you paid the mortgage from your own bank account.  

[ColeenD3]

No. He must be liable for the debt as well as pay the debt. Neither of you can claim the interest.

[burrowsandrea17]

I actually did get the money from him and it came out of my bank account. So I mean technically I paid it but with money from his income so I wasn't sure

[Opus 17]

---

@burrowsandrea17 wrote:

I actually did get the money from him and it came out of my bank account. So I mean technically I paid it but with money from his income so I wasn't sure

---

OK, so you technically paid it, but you don't file a return since you have no income.  Unfortunately, he can't deduct the payments.

You could get married, then the interest and taxes are deductible on a joint tax return no matter who pays them, because marriage imparts ownership for tax purposes.

[burrowsandrea17]

I was told I had to file because I received the advanced ctc last year so I was going through the motions and it was on there so I just leave it blank then and don't report any of that?

[Opus 17]

---

@burrowsandrea17 wrote:

I was told I had to file because I received the advanced ctc last year so I was going through the motions and it was on there so I just leave it blank then and don't report any of that?

---

Well, it won't do any harm to include it, but it won't give you a tax benefit.

You are correct that if you got the ACTC you need to file.  You may receive additional credit if you claim your children.  However, if your boyfriend claims any children as dependents instead of you, he will get a new full amount CTC and you won't have to repay the ACTC you got if your income is less than $30,000.  (This assumes that any children are also the biological children of the BF.  If they are not his children, he can't claim them.). When you file, you can list your deductible expenses including mortgage and property taxes, but they won't actually reduce your tax unless your total itemized deductions are more than $12,500 and your total income is more than $30,000.  

[Mike9241]

where does he live?

there is a concept called equitable ownership.

Equitable ownership.
he may be an equitable owner entitled to deduct his share of the mortgage interest and real estate taxes. An equitable owner is a person who has the economic benefits and burdens of ownership, based on the facts. Occupying and maintaining the home and paying the mortgage and taxes on it are (strong) factors that might indicate equitable ownership. An equitable owner can deduct interest paid on a mortgage even if they are not directly liable on the debt. IRS REG. 1.163-1. Further, mortgage payments and taxes paid from a joint account with two equal owners are presumed to be paid equally by each account owner (absence evidence to the contrary). However, if payments are made from separate funds, each taxpayer is entitled to deduct all the interest and taxes they pay with their separate funds (CCA 201451027).

Trans (TC Memo 1999-233); Uslu (TC Memo 1997-551) ; Edosada (TC Summ Op2012-17)

[Opus 17]

---

@Mike9241 wrote:

where does he live?

there is a concept called equitable ownership.

Equitable ownership.
he may be an equitable owner entitled to deduct his share of the mortgage interest and real estate taxes. An equitable owner is a person who has the economic benefits and burdens of ownership, based on the facts. Occupying and maintaining the home and paying the mortgage and taxes on it are (strong) factors that might indicate equitable ownership. An equitable owner can deduct interest paid on a mortgage even if they are not directly liable on the debt. IRS REG. 1.163-1. Further, mortgage payments and taxes paid from a joint account with two equal owners are presumed to be paid equally by each account owner (absence evidence to the contrary). However, if payments are made from separate funds, each taxpayer is entitled to deduct all the interest and taxes they pay with their separate funds (CCA 201451027).

Trans (TC Memo 1999-233); Uslu (TC Memo 1997-551) ; Edosada (TC Summ Op2012-17)

---

I've read 2 or 3 tax court cases on equitable ownership, and I don't think it would apply to a boyfriend under these circumstances.  In any case, equitable ownership is not recognized by default, so if the boyfriend claimed the interest, and was denied, he would have to appeal to the tax court.

Also, if I recall correctly, equitable ownership does not apply to property taxes, because the tax code for those two deductions is worded slightly differently.