Can You Claim A Deduction For Home Mortgage Interest If You Are On The Deed, But Not Listed On The Mortgage Statement?


3 Answers

Jack Bauer Profile
Jack Bauer answered
Good start, tamarind. The rules for deducting Home Mortgage Interest include the requirement that you be liable for the loan. She is on the deed, so she meets that rule. If she meets the other tests for the deduction, she can claim the deduction. You can do the algorithm on page 3 of IRS publication 936. The rest of the requirements are on page 1 and 2. The specific page that allows a person to claim the deduction if they are not on the 1098, are on page 7, right side. She can report it on line 11 of the Schedule A, 'Home Mortgage Interest not reported to you on a 1098'.

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thanked the writer.
Rena Chisholm
Rena Chisholm commented
You sure know a lot about taxes JackBauer. Can I ask you one ? We have to do a 1099-R this year and I am a bit confused. My husband had an insurance policy back in 1970. His mother was the beneficiary. He was in Nam at the time and she needed money so she borrowed against the policy. He has been paying on that policy all these years. Now,38 years later, the insurance co. is in default, going thru bankruptcy and have been ordered by the court to settle all their accounts. We received a 1099-R with a gross distribution of $5,200.00 with a taxable amount of $2,616.00. We called the co. that is handling their affairs and were told it was from the loan back in "70. I'm not sure what to do with it. I would appreciate it so much if you could shed some light my way. I am on disability and it's not much. We are basically a one income family now so we can't afford to use a tax service.
Rena Chisholm Profile
Rena Chisholm answered
If she is listed on the mortgage then she can take the deduction if she is using Schedule A on her tax return instead of the standard deduction.
Don Scott Profile
Don Scott answered
I am a mortgage professional, and I asked a friend that is a tax preparer. He said that it matters who is on the property taxes, also how the return is filed. I would call a pro with your scenario and then you will have a correct answer that applies to you.

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