Second Home

[johnsmy]

My wife and I helped our adult son with the down payment for the purchase of his townhome.  Our names, along with his, are on the loan documents.  The 1098 lists his name first and then my wife's name.  We use the standard deduction and so does he.  Who enters the mortgage interest on their tax return?  Us or him?  Do we list it as a second home?  Does he list it as his primary home.  He is making the mortgage payments.

[DavidD66 · Accepted solution]

You son reports the interest on his tax return.  If he is making the mortgage payments he is the one paying the interest (and the property tax) so is the one that should take the mortgage interest deduction and property tax deduction.  It is his primary residence.    

[Mike9241]

If his name is on the title to the property he can deduct the interest but only if he itemizes. if his standard deduction is greater than his itemized deductions, then the interest deduction will be of no benefit. 

The standard deduction for a single taxpayer is $14,600.  Some taxpayers can determine which is best without entering the details of their itemized deductions. If he can not, then he should enter the mortgage interest and other itemized deductions. Turbotax will optimize.  

[johnsmy]

So we do not have to enter anything on our tax return?

thank you for the quick reply.