House & mortgage are in my name, spouse & I pay the mortgage from a joint bank account. Can I claim 100% of the prop. deductions, if we both itemize & file separately?

[oregonian]

My spouse and I have a joint bank account from which we pay our mortgage, however I bought the house before we were married and both the house & the mortgage are solely in my name.

We are wondering if I can solely claim 100% of the real estate tax paid and mortgage interest paid deductions, as long as we both itemize deductions on our separate returns. Also, should we split the other deductions 50/50?

How difficult would it be to refile our taxes in this manner for last year, 2017, the year that we were married?

Thanks in advance for your assistance!

[MichaelMc · Accepted solution]

Yes. If you and your wife use filing status Married Filing Separately, you are the only person who could claim the mortgage interest and property tax deductions.

In order to claim either of these deductions, it is not sufficient that you paid the expense; you must also be liable for the expense. Since your wife is not named on either the deed or the mortgage note, she is not liable for payment of property taxes or repayment of the mortgage.

Please keep in mind the requirement that if spouses file separately, they must both itemize deductions or both take the standard deduction. If you have the largest share of the itemized deductions, your spouse could be in a situation where she is forced to itemize with an amount that is far less than the standard deduction and will pay significantly more tax on her income. You will want to try completing your taxes both ways and determine which gives you the best result as a family.

If you do choose to amend your 2017 tax return, please see: Video: How to Amend My Tax Return