Quote:
Originally Posted by freeadvicekclh  What is the name of your state (only U.S. law)? NC
11/29/2008
My parents I purchase a home, they were unable to qualify for the purchase, so I qualified for the home in my name only. I am on loan and title, they are not.
How can I give them their portion of the Mortgage Interest Deduction for their income tax filing?
Thanks,
LEH |
Unfortunately, you cannot. In order for them to be able to take the mortgage interest deduction, they must be both liable for the mortgage, and must pay the mortgage. In this case they appear to be paying it, but they are not liable for it. Its also sticky for you to be the sole owner of their home.
One thing that you could do is sell the home to them via contract and charge them the same interest that you are paying.
You would have to report the installment sale, but the interest you would have to take into income would be offset by the interest that you are able to deduct, and then your parents would be able to deduct the interest showing you as the mortgage holder. It would also protect your parent's interest in the home.
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