irs deduction for mortgage interest not titled to you

[peacheslafluff]

What is the name of your state (only U.S. law)? Washington

My spouse & I want to buy 2 homes on 2 acres. We will use the proceeds from the sale of our home as the down payment of $300,000. Our daughter & family will live in the "Big house" and we will live in the little house. They will be responsible for the mortgage of $305,000 even though their names are not on the deed. Can they deduct the interest on their tax return?

We want to make this move because of medical problems and spouse has had colon & liver cancer for 3 years.What is the name of your state (only U.S. law)?

[davew128]

Originally Posted by peacheslafluff

What is the name of your state (only U.S. law)? Washington

My spouse & I want to buy 2 homes on 2 acres. We will use the proceeds from the sale of our home as the down payment of $300,000. Our daughter & family will live in the "Big house" and we will live in the little house. They will be responsible for the mortgage of $305,000 even though their names are not on the deed. Can they deduct the interest on their tax return?

No they can't.

[LdiJ]

Originally Posted by peacheslafluff

What is the name of your state (only U.S. law)? Washington

My spouse & I want to buy 2 homes on 2 acres. We will use the proceeds from the sale of our home as the down payment of $300,000. Our daughter & family will live in the "Big house" and we will live in the little house. They will be responsible for the mortgage of $305,000 even though their names are not on the deed. Can they deduct the interest on their tax return?

We want to make this move because of medical problems and spouse has had colon & liver cancer for 3 years.What is the name of your state (only U.S. law)?

In order to claim a deduction for home mortgage interest or property taxes you must have 1) actually paid the interest and property taxes and 2) must be legally liable for them.

In this instance, if your son is not on the deed he would not be legally liable for the taxes. If he is not on the mortgage he would not be legally liable for the mortgage interest.

Therefore, you might consider having your son be a co-signer of the mortgage and a co-owner of the property.