• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Unmarried Partners Deducting Mortgage Interest?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

C

ChgoLoopDuo

Guest
Hello, here's my situation:

A retired friend (he's on disability) and I purchased a house together in July 2000. However, because of our differing credit scores, my name was removed from the mortgage documents at the last minute to qualify. (His credit is stellar, mine was not so hot).

Here's the sticky part: I make 100% of the tax and mortgage payments, while he simply owns 30% of the house (according to our separate, legal agreement and the deed). How can I deduct the mortgage interest and taxes without my name officially being on the mortgage note? I've seen several professional opinions on this... some say I can't do anything. Some say I should enclose a copy of the 1098 form and have my retired friend sign a statement saying he is not deducting anything on his taxes for this mortgage, and that I make all the payments.

I've also seen suggestions where we split the deductions 30/70, etc. Help!! ?
 


W

wowie

Guest
I am not a CPA and not an attorney.

Here is my unprofessional relpy:)

If he is on disability is he even filing a tax return? If he is not filing a tax return I would say go ahead and deduct it. . . He probably doesn't need the expemtion since he has such little income. Unless he has outrageous dividend income or something. I would say, work it out on BOTH of your returns to see who gets the most money back. I don not think that you can split the interest on the return. Of course I have been wrong before and I am sure that I will be wrong again:)

Also, if he ends up taking the mortgage interest he will be able to deduct all of his various medical expenses and mileage. I am assuming that he has some since he is on disability. Probably he would not be able to make those medical deductions unless he gets the mortgage interest.

Another option to consider is that if you pay more than 51% of his necessities (food, clothing, medical, housing, etc) then you can claim him as a dependant. He will still file a seperate return if he is supposed to, but he will not claim himself as an exemption.

All of these are good options. It really is not too expensive to go to H & R Block or something like that. Good luck.

Valerie
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top