New homeowner, can I deduct all mortgage interest and property taxes on my 1040?
by Mortgage Rates on Sunday, October 31st, 2010 | 5 Comments
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generally speaking the primary borrower gets the deduction but if you are also on the note then you can alternate every other year. Also don’t forget any mortgage insurance as it too may be a tax deduction
The rule would be that you can take a deduction (if you itemize) for the mortgage interest and property tax “you paid” if you are on the title. While the IRS have traditionally be a bit loose on enforcing the rules if you were audited you would need to prove that you paid the amount that you are claiming. It is a little late to establish such a record but the best way would be for you to always pay the mortgage and taxes with a check from an account that only you are on. Now any cash gift that your boyfriend may make to you on a monthly bases in about half the payment amounts would be a now taxable event.
More than one borrower: If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and write “See attached” to the right of that line.
P.S. golferw is incorrect, Mortgage Insurance is not qualified to be deductible.
Depends on how the ownership and mortgage are handled. IRS codes allow you to deduct such interest and taxes ONLY if a) You are legally obligated to pay them, and b) if you actually DO pay them.
Hence, if you and the BF are splitting the payments monthly, you can only deduct the amount YOU paid, and not what HE paid.
In order to do what you would like to do, you need to keep your finances separate and keep good records of who made the payments.
And to correct previous response errors, mortgage PMI IS deductible, but only for calendar 2007, thus far. It remains to be seen if the deduction will be renewed for following years.
Are you both on the mortgage and on the title? And who is actually making the payments.
Only a person who is legally responsible for the payment (is on the mortgage) can deduct the interest, and only someone on the title can deduct property taxes. In addition, you can only legally deduct the amount that you actually paid, not also deduct what your co-owner paid. So depending on circumstances, you might have to split it up.