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

[SweetieJean]

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

[dydeanne55]

Yes live there and not commercial.

[SweetieJean]

Ok, because you are asking from TT Business.

[TaxGuyBill · Accepted solution]

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

[dydeanne55]

why is this a CFR and not an IRS rule?

[TaxGuyBill]

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.

[dydeanne55]

Seems redundant but considering the complexity probably necessary.

[macuser_22]

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.g...>

[dydeanne55]

Thanks

[CandyceCYBrown]

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

[DianeW777]

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.
   • IRS Publication 936