Interest Claim on House

My husband and I divorced Nov.1 2005. We paid off the house in August and he quick claimed it to me in August. I am now the owner of the house. Who claims the interest on their tax forms? He says he does. Everyone tells me I do since I own the house. I don't know.
Oh - we are filing separately

EileenB said:

My husband and I divorced Nov.1 2005. We paid off the house in August and he quick claimed it to me in August. I am now the owner of the house. Who claims the interest on their tax forms? He says he does. Everyone tells me I do since I own the house. I don't know.
Oh - we are filing separately

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Well, you were an owner of the home when it was paid off, and you own the home now. However, if you paid off the house in August there had to be very little interest. How much are you arguing over and does it really make a difference on either of your tax returns?

It's about $4400. I don't know what the argument is except he keeps 'telling' me how to file so he can take the interest deduction on the house. I haven't even looked at my taxes but he's adament (sp?) about it how I need to file to best benefit him. Personally, I don't care what benefits him. My family tells me to take the deduction. I have to figure this out on my own so I'm looking for advice. He's getting very hostile about it and I'm trying to figure out why. Thanks in advance.

EileenB said:

It's about $4400. I don't know what the argument is except he keeps 'telling' me how to file so he can take the interest deduction on the house. I haven't even looked at my taxes but he's adament (sp?) about it how I need to file to best benefit him. Personally, I don't care what benefits him. My family tells me to take the deduction. I have to figure this out on my own so I'm looking for advice. He's getting very hostile about it and I'm trying to figure out why. Thanks in advance.

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Its legal for either of you to take the deduction as you were both owners of the home at the time that the interest was paid. I am not sure who the IRS would ding if you both took the deduction.

I probably boils down to a fairness issue. Assuming that your divorce was final in November, you may file as single or head of household (if you qualify for HOH). See how much of a difference it would make on your taxes if you don't get the deduction. Run your numbers using the standard deduction, and then do it again with itemized deductions. See how much of a difference the interest actually makes. If the interest doesn't put you very far over the standard deduction, it won't make much difference on your actual taxes.

Thanks SO much