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Level 2
posted Jun 3, 2019 11:44:58 AM

Name on deed but not on mortgage. I pay part of the mortgage, can I claim part of the interest?

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1 Best answer
Level 9
Jun 3, 2019 11:45:03 AM

Yes, you can deduct the interest that you pay because you own the property, even if you are not on the mortgage.


Regulation §1.163-1(b):

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



11 Replies
Level 15
Jun 3, 2019 11:44:59 AM

Do you live there?  Ir is this a commercial property?

Level 2
Jun 3, 2019 11:45:00 AM

Yes live there and not commercial.

Level 15
Jun 3, 2019 11:45:02 AM

Ok, because you are asking from TT Business.

Level 9
Jun 3, 2019 11:45:03 AM

Yes, you can deduct the interest that you pay because you own the property, even if you are not on the mortgage.


Regulation §1.163-1(b):

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



Level 2
Jun 3, 2019 11:45:04 AM

why is this a CFR and not an IRS rule?

Level 9
Jun 3, 2019 11:45:05 AM

A Regulation is an IRS rule.  Actually, it is higher than an IRS rule.  A tax Regulation is written by and/or approved by the Department of Treasury, which is the 'boss' of the IRS.  It is an official interpretation and/or expansion of the Law written by Congress.  Most of what you read in the IRS Publications are based on Regulations.

Level 2
Jun 3, 2019 11:45:06 AM

Seems redundant but considering the complexity probably necessary.

Level 15
Jun 3, 2019 11:45:08 AM

Congress writes the tax laws (IRC's - Internal Revenue Code).  The treasury regulations (26 C.F.R.)--commonly referred to as Federal tax regulations-- pick up where the Internal Revenue Code (IRC) leaves off by providing the official interpretation of the IRC by the U.S. Department of the Treasury.   The IRS provides publications and tax forms that comply with both the IRC's and CFR's for taxpayers to more easily understand the complex tax laws.

The IRS enforces the compliance with those laws.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/privacy-disclosure/tax-code-regulations-and-official-guidance">https://www.irs.gov/privacy-disclosure/tax-code-regulations-and-official-guidance</a>

Level 2
Jun 3, 2019 11:45:09 AM

Thanks

Returning Member
Apr 8, 2022 7:52:52 AM

How do I claim interest if I cannot input information on 1098?

Expert Alumni
Apr 8, 2022 8:26:16 AM

No, not if you are not liable for the mortgage loan. You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that:

  1. Makes your ownership in a qualified home security for payment of the debt;
  2. Provides, in case of default, that your home could satisfy the debt; and
  3. Is recorded or is otherwise perfected under any state or local law that applies.