Life Estate Mortgage Deduction

[FDNY]

I know that for a Life Estate the life tenant is responsible for the interest portion and remainder man for the principal.

But if the life tenant can't pay the interest and the remainder man does, can RM take the mortgage interest deduction?  RM is also on the mortgage and has only one home.

Can't find anything that says yes.

Appreciate any help on this.  Thanks, Bill

[FDNY]

My opinion is NO, because the remainder man only has a future interest and the life tenant has a 100% present interest in the home.  Same goes for real estate taxes, responsibility and tax deduction for the LT.  

I was hoping Loophole Louie might chime in on this.

 

[mcb39]

It has always been my understanding that the LT is responsible for and gets the deductions for al RE taxes upkeep, etc until the date of death.

[FDNY]

Thank you Marilyn.  I've got beneficiary's attorney telling me to just take the deduction.  Now my client is telling me she is not actually on the mortgage but will be.  She just made this very easy for me.   And on the season goes.