My parents co-signed for my mortgage and pay me $1500 per month to help me pay mortgage. That’s less than half, but Dad claims half my mortgage tax deduction.?

[laurie5553]

Thank you for confirming that this is a complicated tax issue! I worked for the legislature for 10 years and it was my job to analyze bills, so I feel like I'm pretty good at researching laws. But I couldn't find the answer to this question. 

[laurie5553]

i love you!

[laurie5553]

i like the way you think!

[Mike9241]

it's not qualified residential interest to the parents because they don't live there. per code section 163(h)(4)

(A)Qualified residence
(i)In general
The term “qualified residence” means—
(I)the principal residence (within the meaning of section 121) of the taxpayer, and
(II)1 other residence of the taxpayer which is selected by the taxpayer for purposes of this subsection for the taxable year and which is used by the taxpayer as a residence (within the meaning of section 280A(d)(1)).

but that leaves the possibility of it being deductible as investment interest since they are on the title.  however, one might view it as a gift because it is not paid directly to the mortgage company. Who's to say definitively what the money is for without an agreement. One could argue that it's to pay for food and clothing and other costs. Unfortunately, some things in the Code are not clear cut and the only way to get a definitive answer is to request a Private Letter Ruling. But this would likely be cost prohibitive. 

****

as to rental

different rules apply depending on whether you're

renting at FMV or not. 

[laurie5553]

So, what should I do? I sent my parents a text with a link to the article I found on TaxAdviser, and no response. My dad is an attorney, but he has gotten in trouble with the IRS multiple times. I don't want to be a biotch, but I also don't want to be screwed over. I really need this mortgage interest deduction, especially since I won't be able to claim my kids as dependents anymore. 

[TomD8]

"So, what should I do?"

All we can do is acquaint you with the tax rules regarding the mortgage interest deduction.  Since your father is a co-owner, and since per 26 US Code 280A  "personal use of a residence" includes use by a family member, it appears that you and your father each have a lawful claim to the deduction.  Technically in this situation you should each claim the portion of the mortgage interest that you actually pay.  This is an issue that you and your father have to work out between yourselves.

26 U.S. Code § 280A - Disallowance of certain expenses in connection with business use of home, rent...