Mortgage interest deduction

[Hol67]

I inherited my fathers home. There is a HELOC on the home which is in the name of the estate of my father. I am the executrix of the estate, am living in the house and making these payments. Do I have the right to deduct the interest on this mortgage or would the loan have to be transferred to my name individually? Also how would I know if it is better to take the head of household standard deduction vs itemizing?

[KrisD15]

Yes

you have the right to claim the interest since you have an "Ownership Interest" in the property. 

(you would lose part of your inheritance if the loan was not paid).

The loan does not need to be in your name, HOWEVER there are rules to how the interest is handled for a Home Equity Line Of Credit. 

If the loan is more than what was used to purchase, build, or improve the property, it is NOT deductible interest for anyone. There are also stipulations depending on when the loan was acquired.

GENERALLY, if the HELOC was used to improve the property, such as a room addition, the interest may be claimed. If the loan was used for any other reason, the interest may not be claimed. 

If using TurboTax, you would choose Head of Household for your filing status if eligible and also enter your Itemized Deduction amounts. 

The program will inform you of the more advantageous option. 

The program also allows you to change that option (switch between Standard and Itemized)  if you so desire.