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Advice on sharing tax & interest deductions

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Sandra Owensby

we live in No. Calif. area & I am wanting advice on a situation that has arisen between our son & us (his father & mother). about 5 mo's ago now, my husband & I decided to go ahead & sell our 2nd home. at that time, we offered to put $100,000 on another home & co-own with our son, from the proceeds of the sale of our 2nd home. we then took out a home improvement loan, to fix up this 2nd home. as this home became more & more improved, my son started thinking he would rather keep the home & work toward a co-ownership of this home, instead of selling it. he came up with taking out a loan, over & above the first $100,000. just as we had figured on, if we had bought another house. (and figured that $100,000 as a down payment) the money realized from my son's loan will go to pay off our 1st & 2nd mortgage on the house & give us about $50,000, which is needed to renovate & improve the other house we own. anyway, the conflict has arisen, that our son & we, both still need the tax & interest deduction.
I told our son that we had to pay quite a bit of taxes this year, and needed to split the deduction on taxes & interest on the home in question. since in reality, the taxes & interest would be paid out of this loan of my sons...he took exception to having to share the deductions. it then became a matter of not co-owning the property at all. I pointed out, that if we wanted to get creative, we could refinance all our loans, plus extra to renovate the other home, rent the property out ourselves...get the mortgage paid for by the renter, AND claim all the taxes & interest ourselves. without involving our son at all. consequently, our son has agreed to sharing the deductions, on the condition that a tax man says that this is feasible.
Hence, this is where you come in...can you advise us? is this possible to share the taxes & interest?

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