Can my wife claim mortgage interest where we are filing separately and her name is not on the mortgage? will it raise a flag with IRS?

[Vanessa · Accepted solution]

If her name is on the deed and she is also paying the mortgage then yes, she can claim the mortgage interest. If she is not an owner of the property, then no. 

"Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner,  even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness. "https://www.law.cornell.edu/cfr/text/26/1.163-1#b

It may possibly have the IRS request verification since her name would not be on the 1098.