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Mortgage interest

My daughter has a house on my property {we also have a home on this same property} and we have one mortgage. How can I divide interest and taxes for each of us on separate tax returns?

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2 Replies

Mortgage interest

it depends who actually paid the interest and whose name is on the mortgage: 

 

"To deduct taxes or interest on Schedule A (Form 1040), Itemized Deductions, you generally must be legally obligated to pay the expense and must have paid the expense during the year"

 

https://www.irs.gov/faqs/itemized-deductions-standard-deduction/other-deduction-questions/other-dedu...

Vanessa A
Expert Alumni

Mortgage interest

Is your daughter on the mortgage or the deed?  Does she pay part of the mortgage?  Does she own half of the land?

 

Basically, if she is liable for the mortgage and paying some of it, then you would prorate the interest based on who is paying what if you are itemizing your returns.  If she is not on the mortgage or deed, then she would not be able to claim the deduction as she would basically be considered a tenant. 

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