Solved: My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i
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My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

 
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Level 15

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

In most instances, interest can be deducted only by the person or entity that is legally responsible for the debt. However,  a potential exception appears in Regs. Sec. 1.163-1(b), which states:

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 the mortgage, may be deducted as interest on his indebtedness. 

https://www.thetaxadviser.com/issues/2012/jan/tpp-jan12-story-01.html

There have been numerous Tax Court cases since then, affirming this concept, of which your CPA should be aware.

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Level 15

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

Who lives in the home?
New Member

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

My co-owner.
New Member

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

Please help to send me the IRS article showing who can claim for the mortgage. Thanks!
Level 15

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

New Member

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

Excellent! Your answer was very helpful. I sent it to my CPA and she has agreed to it. Thank you very much for your expert advice.
Level 15

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

In most instances, interest can be deducted only by the person or entity that is legally responsible for the debt. However,  a potential exception appears in Regs. Sec. 1.163-1(b), which states:

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 the mortgage, may be deducted as interest on his indebtedness. 

https://www.thetaxadviser.com/issues/2012/jan/tpp-jan12-story-01.html

There have been numerous Tax Court cases since then, affirming this concept, of which your CPA should be aware.

View solution in original post

Level 15

My co-owner and i are on the single family home's title. Only my name is on the loan. My co-owner pays for the mortgage and claims the mortgage interest deduction on his income tax. My CPA said that only the person on the mortgage can claim the mortgage i

It's clear, from the fact of your situation,  that your co-owner is an equitable owner and can claim the deduction.
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