Daughter is co-signer and paid all of father's mortgage payments

[David]

Daughter is a co-singer on her father's mortgage. Her name is not on the deed to her father's house. She paid all mortgage payments and her name and her father's name are listed on  Form 1098. However, only the father's SSN is listed on Form 1098.

I am trying to determine whether the daughter can claim the mortgage interest shown on the 1098 since she paid all the mortgage payments. It appears that since she isn't an owner of the house that she can't deduct the interest even though she paid all the mortgage payments.

However, I am finding conflicting information in my research. Some research information says that since she is a co-signer that she gets to deduct any interest she paid. Others state that she has to also be listed on the deed to the property.

Can anyone give me a clear cite regarding whether the daughter can deduct the interest?

Thanks.

[Lee B]

Is this house her residence or does she live somewhere else ?

[David]

She lives in a different state.

[jklcpa]

3 hours ago, David said:

Can anyone give me a clear cite regarding whether the daughter can deduct the interest?

No deduction. Daughter doesn't have any ownership the home and doesn't live there, so she can't claim that it as either principle residence or a secondary one. See IRC 163(h)(3) and 163(h)(4)(A)(i).

Mortgage interest that is allowed under sec 163(h)(3) must be on a qualified residence used as a principle residence or secondary residence.  Sec 163(h)(4)A)(i) defines "qualified residence" as a taxpayer’s principal residence under sec 121 or one other residence that meets the requirements of IRC 280A(d)(1) (a second home which is used for personal purposes for at least 14 days per year or 10% of the number of days it is rented during the course of a year). 

I don't think it would be deductible even there was a life estate involved because daughter would be the remainderman and doesn't have present ownership, only a future ownership interest.

[David]

Thanks for your help.