Can I claim mortgage interest if my name is on the Deed but not the mortgage?

[xmasbaby0]

Did you make the mortgage payments?

[vickyochoa71]

Yes

[xmasbaby0 · Accepted solution]

Then yes, you can enter the interest paid on the mortgage.  If you are on the deed with someone else, you should divide the amounts you paid and report them accordingly on your tax returns.

[TaxGuyBill]

As was mentioned, you can deduct the amounts you actually paid, even if you are not on the mortgage.

It is quite possible the IRS will send you a notice asking about the mortgage interest (because they did not receive a 1098 reporting the mortgage interest in your name), but you can just respond to the IRS notice indicating you are an owner of the home, and made the payments (you may need to show proof).

[neemazad]

(Sorry for the revival of an older thread...)

What documents would be sufficient to show proof of payment? Would this require e.g. 12 bank statements showing, say, half of the mortgage amount deducted from the account each month? (That is, what if the funds are "pooled" each month into the account of the mortgage holder, so there is no direct payment to the Lender?)

Is there a way to pre-empt the notice by including such documentation to begin with? Or is it better just to wait to hear from the IRS?

[Hal_Al]

Q. Is there a way to pre-empt the notice by including such documentation to begin with?

A. No

Q. Is it better just to wait to hear from the IRS?

A. Yes

Q. What documents would be sufficient to show proof of payment? 

A.  You do not need any proof when you file your tax return.  That comes later if questioned by the IRS.  Yes,  12 bank statements showing, half of the mortgage amount deducted from the account, goin to the mortgage co., each month  should suffice.   In the case of a  joint, you would need to show you made sufficient deposits to cover the payments. 

________________________________________________________________________________________

Unmarried couples claiming mortgage interest. You pretty much have a choice. One can claim it all or you can split it. It's usually best if only one claims it, allowing the other to use the standard deduction.

You have to meet the rules, which are:

1. You are legally obligated to pay it (you are considered to have a constructive/equitable interest in the mortgage)
2. You actually pay it. Paying from a joint account where you made sufficient deposits to cover the payments will usually meet this standard. However. paying from your own account would be a stronger audit defense. 

[Demi66]

If so where in the program, when I tried to submit it, it says if box 7 is not checked than I can not write off the interest. I am on the deed and I pay the mortgage, but the loan is in my dad's name.

[ErnieS0]

Check your entries @Demi66. 

1. Type "1098" in Search in the upper right
2. Select "Jump to 1098"
3. Say Yes to Did you pay any home loans in 2021?
4. Continue past Get ready to be impressed
5. Select Change how I enter my form on Let's import your tax info
6. Select Type it in Myself on How do you want to enter your 1098?
7. Enter your lender name
8. Select None of these apply on Do any of these uncommon situations apply to your loan?
9. Enter your loan details
10. Select Yes, this load is secured by a property I own since your name is on the deed

[Demi66]

I do not get any of those any of those options pass your line 4. 

It goes right into asking for a lender line 7, I don't get option line 8 & 10

[DawnC]

The lender is the bank or financial institution you paid the interest to.    You can find the lender's name in the upper left box of the Form 1098.   

Here's how to enter your mortgage interest statement in TurboTax:

1. With your return open, search for 1098 and select the Jump to link in the search results
2. Follow the instructions to enter your 1098 info

The IRS lets you deduct your mortgage interest, but only if you itemize deductions. You can't deduct the principal (the borrowed money you're paying back).

In addition to itemizing, these conditions must be met for mortgage interest to be deductible:

• The loan is secured, which means the lender has some kind of guarantee of payment, usually in the form of property. If a borrower defaults on payments, the lender can seize the property that’s securing the loan. If you’re buying or refinancing a home, especially if it’s your first home, the loan is usually secured by the home you’re buying or refinancing.
• The home with the secured loan must have sleeping, cooking, and toilet facilities.
• The debt can’t exceed $750,000 (or $1,000,000 if the loan was taken before December 16, 2017) to get the full deduction.
• You or someone on your tax return must have signed or co-signed the loan.
• If you rented out the home, you must have used the home more than 14 days during the tax year or 10% of the number of days you rented it out, whichever is greater.

What if I don't have a 1098 mortgage interest statement?

@Demi66