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Level 1
June 1, 2019
Question

New house purchase

  • June 1, 2019
  • 1 reply
  • 6 views
I divorced last year and my mom helped by purchasing a mortgage for my new house. She is the only one on the mortgage, but I make the house payments and pay all of the bills for this home. Can I claim the new house or does she claim it?

1 reply

June 1, 2019

Yes, you can claim it. You have an equitable interest in the house. 

If the taxpayer is not the legal owner of the residence but can demonstrate “equitable ownership,” he or she will be entitled to the mortgage interest deduction. In Uslu , T.C. Memo. 1997-551, the Tax Court held that, because the taxpayers were able to prove that they had the benefits and burdens of ownership of a residence, they were the equitable owners of the residence and therefore under Regs. Sec. 1.163-1(b) were entitled to the mortgage interest deduction.

To enter your mortgage interest:

  • Type mortgage interest in the search/find box and click search.
  • Click on Jump to mortgage interest.
  • Click on Add a Lender.

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