Mortgage interest deductable

[Goodfella]

What is the name of your state? Hawaii

I originally posted this on the Real Estate forum and was asked to post on the Tax forum...

Here goes:

In 2000, we purchased the house we were renting from our landlord by signing an Agreement of Sale and a Promissory Note stating the purchase price and interest rate. This was strictly between us and the landlord, who then became our mortgage holder.

No transfer of title ever took place until 4 years later when we refinanced and paid off the landlords note.

My question: Is the interest that we paid under the terms of the original Note deductable even though there was no transfer of title?

ThanksWhat is the name of your state?

 

[LdiJ]

What is the name of your state? Hawaii

I originally posted this on the Real Estate forum and was asked to post on the Tax forum...

Here goes:

In 2000, we purchased the house we were renting from our landlord by signing an Agreement of Sale and a Promissory Note stating the purchase price and interest rate. This was strictly between us and the landlord, who then became our mortgage holder.

No transfer of title ever took place until 4 years later when we refinanced and paid off the landlords note.

My question: Is the interest that we paid under the terms of the original Note deductable even though there was no transfer of title?

ThanksWhat is the name of your state?

Yes, it would have been deductible in the years that it was paid. You had a valid "land contract" or "mortgage contract". However, its too late now for 2000 and 2001 and it will be too late for 2002 after April 15th this year. (if you are considering amending past year returns)

 

[Goodfella]

Yes, it would have been deductible in the years that it was paid. You had a valid "land contract" or "mortgage contract". However, its too late now for 2000 and 2001 and it will be too late for 2002 after April 15th this year. (if you are considering amending past year returns)

Actually, we have been claiming the interest deduction since 2000. My purpose in posting this was to get some other opinions about whether it was kosher. I guess my tax guy was correct all along.

Your response has made my day.
Thanks!