Mortgage co-borrower

[VA26]

In 2021, my daughter bought a house.  For the mortgage, I was a co-borrower with her on the mortgage, but the title is only in my daughter’s name.  For the 1098 interest payments and points/costs related to the new mortgage, do I need to split 50% of those amounts or can she take all 100% of the amounts on her tax return?

[bosso3]

IRS Publication 936 states:

"You can’t deduct home mortgage interest unless the following conditions are met.

• You file Form 1040 or 1040-SR and itemize deductions on Schedule A (Form 1040).

• The mortgage is a secured debt on a qualified home in which you have an ownership interest.  Secured Debt and Qualified home are explained later."

Points are handled differently, and usually spread over the life of the loan.

See https://www.irs.gov/taxtopics/tc504  

If you paid for part of the loan, your payments may be able to be considered a gift to your daughter, and she may be able to deduct the payment.

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[ThomasM125]

She can deduct 100% of the mortgage interest if she made the mortgage payments during the year.