What is the name of your state? NY
As part of my wife's divorce in 1996, she was given their home but ordered to provide a 2nd mtg to her husband, payable in a lump sum, plus 5% interest in 2004. She and her ex never executed or recorded the court ordered 2nd mortgage. Nevertheless, in 2004 the full payment, including interest, was made to her ex.
Question: Is the Court ordered "2nd Mtg" interest paid in 2004 deductible, even though a 2nd mortgage was never executed by the parties or recorded?
Donkatfam
As part of my wife's divorce in 1996, she was given their home but ordered to provide a 2nd mtg to her husband, payable in a lump sum, plus 5% interest in 2004. She and her ex never executed or recorded the court ordered 2nd mortgage. Nevertheless, in 2004 the full payment, including interest, was made to her ex.
Question: Is the Court ordered "2nd Mtg" interest paid in 2004 deductible, even though a 2nd mortgage was never executed by the parties or recorded?
Donkatfam