Mortgage payments as charitable contributions?
by Mortgage Rates on Sunday, October 17th, 2010 | 6 Comments
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NOPE.
Charitable contributions have to be to a charitable organization, and you’re NOT. Not charitable in least, maybe RENT, which is not deductible. Donor can’t get benefit from contributions and he’s getting living space! He’s suffering the natural consequences of a history of making poor financial decisions, such that he couldn’t be on mortgage. Hopefully he’s working on that!
IF you were married, you’d file a joint return with him and he’d get benefit of itemizing which you will probably be doing.
However, if you two bought in July 2008 and are both in title, you’re eligible to each get your share of the $7500 first time homebuyer’s credit, IF you’re both first-time home owners. It’s a non-interest bearing loan payable in $500 increments over 15 years, a pretty good deal! Put ALL or most of the money onto additional principal payments, increasing your equity in home, decreasing dramatically your interest payments over the life of the loan. Although maybe he should use his share to clean up his delinquencies and improve his credit so that when he’s raised his rating, you two could refi with him on mortgage.
Could ask for an IRS letter ruling about his right to take half the interest deduction since he is in title even though he is not legally bound on mortgage. Some indications they might rule in his favor, but without it, answer is NO.
A charitable contribution? No, how would you even think that?
With both names on the deed, he could claim the real estate taxes if he pays them.
Nobody gets to claim the whole mortgage payment, just the interest and taxes.
if he claims the mortgage payment he has made as a charitable contribution, he must have receipts. YOU would have to claim it as income if you were a registered charity. Since you are not, this is NOT legal.
He can’t take a deduction for charitable contributions because you are not a registered nonprofit charity.
You can take the full amount of the mortgage interest deductions on your return. You only get to claim each deduction once, there’s no loopholes that allow you to claim something and then have him claim the same deduction.
I’m a real accountant that does real taxes. Only you can claim it. And you aren’t a charity, that would be very illegal. So short answer no. What you are asking is pretty horrible. If you two can buy a house together, get married, and then file jointly. Then you can both claim the mortagage payments. Everything else you are asking is illegal.
Slight correction, can legally claim the interest he paided, but you cannot claim it on yours. You would have to make a note and keep all your records incase of an aduit to prove what you have done. But there is nothing wrong with going half and half.
If he is not legally liable for the mortgage he cannot deduct any of the interest.