Can the Ex Claim the House and Kids?

[rgh1020]

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

Kate and Dick are divorced. Kate was awarded the home, and both were awarded joint custody of the two children, but the children have prime residence with Kate. Dick lives and works in another state (not sure if that is relevant). Dicks name is not on the deed, but it is on the mortgage. Kate pays the entire mortgage, Dick pays only child support. My question is... Can Dick claim the house and kids at tax time?

Thanks.
PS - thanks to mistoffolees and Ronin for answering my question this past Sunday. I appreciate it. So does Kate! What is the name of your state (only U.S. law)?

 

[mistoffolees]

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

Kate and Dick are divorced. Kate was awarded the home, and both were awarded joint custody of the two children. Dicks name is not on the deed, but it is on the mortgage. Kate pays the entire mortgage, Dick pays only child support. He lives and works in another state (not sure if that is relevant). My question is... Can Dick claim the house and kids at tax time?

Thanks.
PS - thanks to mistoffolees and Ronin for answering my question this past Sunday. I appreciate it. So does Kate! What is the name of your state (only U.S. law)?

The house will be determined by IRS rules. Since Dick is not paying the mortgage, he can not take the mortgage deduction.

Assuming that the divorce decree doesn't address the child deduction issue, it falls back to IRS rules:

1. Whichever parent has the kids the most nights in the year gets the deduction.
2. If it's the same number of nights, there are tie breakers (the first one is which parent has the higher gross income, and so on).

The way around that is for Kate to agree to sign an 8332 form granting the deduction to Dick. Dick might have to give something else up in exchange, though.

 

[LdiJ]

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

Kate and Dick are divorced. Kate was awarded the home, and both were awarded joint custody of the two children, but the children have prime residence with Kate. Dick lives and works in another state (not sure if that is relevant). Dicks name is not on the deed, but it is on the mortgage. Kate pays the entire mortgage, Dick pays only child support. My question is... Can Dick claim the house and kids at tax time?

Thanks.
PS - thanks to mistoffolees and Ronin for answering my question this past Sunday. I appreciate it. So does Kate! What is the name of your state (only U.S. law)?

Under the federal tax code, absolutely NOT.

In order to claim mortgage interest and property taxes there are two important rules that apply, and both tests must be met.

1) You must be liable for the payment of the interest and property taxes. If Dick is still on the mortgage he is liable.

2) You must have actually PAID the mortgage and interest payments. If Kate is living in the home and making the payments, Dick does not meet this test and may not claim the interest or property taxes.

As far as claiming the children is concerned....

The flat out rule is that the parent with whom the children primarily reside is the only parent who can claim the children. A parent with whom the children do not primarily reside may only claim the children if the parent with primary custody releases the exemptions to the other parent via a form 8332 or its equivalent.