Terry O Posted February 18, 2011 Report Posted February 18, 2011 Client comes in with girlfriend - -they bought a house together - -one mortgage statement with HER name & SS# on it. If they split the deduction - -neither itemizes since they bought the house later half of the year. However, he earns a LOT more than she does - is there a way that they can split it? Hopefully - -they will get married & this will not be an issue next year. Quote
barosser Posted February 18, 2011 Report Posted February 18, 2011 In an audit the IRS will not allow the deduction by him unless he is liabel for the debt. Make sure he keep's copies of the payments. Quote
Pacun Posted February 18, 2011 Report Posted February 18, 2011 In an audit the IRS will not allow the deduction by him unless he is liabel for the debt. Make sure he keep's copies of the payments. In addition to being liable, he needs to be the owner and maybe you want to make sure he actually paid. Quote
Terry O Posted February 18, 2011 Author Report Posted February 18, 2011 Back in the day - - -remember when people HAD to be married to get a mortgage - -I know I am showing my age - - - but seriously - -he IS on the title, as is she. Quote
jainen Posted February 18, 2011 Report Posted February 18, 2011 >>he IS on the title<< She didn't get a mortgage without his qualifying income, and the lien is not enforceable without his signature anyway, so obviusly he is a borrower too. See the instructions to lines 10 and 11 of Schedule A. "If you and at least one other person (other than your spouse if filing jointly)were liable for and paid interest on the mortgage, and the other person received the Form 1098, attach a statement to your return showing the name and address of that person. To the right of line 11, enter 'See attached.'" Quote
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