I am California resident. Couple years ago, I gave 1/2 of down payment to my nephew who bought a house in Ohio where he lived and worked there. He is sole owner of the house, and have his name on the mortgage. Two years after, he lost his jobs. So I have given him money to pay property tax, and monthly mortgage. He added my name on the title of his house. He has little income, so he will use standard deduction for filling his tax. Could I claim those payments for deduction from federal and state income tax? If yes for federal, and no on California, how do I remove the portion of Ohio property tax and mortgage interest from federal? Thank you
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If you are on the title of the property, and make the payments, then you can deduct the property tax. If you are a California resident, you do not have to exclude the Ohio property tax from your California return.
In order to be able to deduct mortgage interest, you should be listed as a borrower on the loan, be legally obligated to pay the debt, and actually make the payments.
Please see this article and this one for more information on home mortgages from TurboTax.
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