A specific income tax question

[BIGBILL]

I am a medical student trying to figure out my federal income taxes. I just got married in June 1999. My wife and I bought a house with the help of her parents. All four of our names are on the deed to the property, but her parents are the only ones on the mortgage loan at the bank. My wife and I are the only two living in the house, and we are paying all the utility bills, the house mortgage, and the property taxes (on a tight financial aid budget).

I am not claiming any income this year. I usually make some money over the summer, but this year my dad and I swapped time and labor. He helped me fix up my house, and I helped him build his new house. My wife has to file federal taxes in order to get her "taxes withheld" from her summer job refunded to her. We are way under the limit for having to actually pay taxes, so we will have no trouble getting all her money back.

My father-in-law wants to know if he can claim the intrest that my wife and I have been paying in our house mortgage as a deduction from his income when he files his taxes.

I have no idea!!!

I don't know if I can benefit from claiming it somehow, or if it is legal for him to somehow claim it.

I would appreciate some good advice because we are both trying to save some money by doing our own taxes.

Thanks,

BIGBILL

 

[jwtaxman]

If the mortgage interest Form 1098 is in your Dad's name and ss number, tell him to take it.

Good luck.