Interest Reported in partner's SS#

They both make payments on this new note.

Client B used the $30,0000 to purchase a rental house in the name of her single member LLC.

The 1098 mortgage interest statement come in the name and SS# of client A.

Can B claim and deduct 60% of the interest on her schedule E?

Should there be any kind of nominee 1098 filing with the IRS?

====================Unless this is some sort of registered domestic partnership or common-law marriage under state law (i.e. treated as a marriage), I would say that a form

1065 might be required. This is an area on which the IRS is cracking down.

This is a situation where they are NOT considered married. They are two individual taxpayers. One of whom is filing rental income on schedule E as a SMLLC. I don't understand what kind of partnership return would be filed. Client B intentionally set up a SMLLC for the rental rather than a partnership.

In an attempt to keep the 60% interest deduction, I have advised client B to make 60% of the mortgage payment out of her rental account and client A to make

40% of the payment out of her personal account. (neither client can itemize).

Have I given bad advice? Have I preserved the deduction?

This is a situation where they are NOT considered married. They are two individual taxpayers. One of whom is filing rental income on schedule E as a SMLLC. I don't understand what kind of partnership return would be filed. Client B intentionally set up a SMLLC for the rental rather than a partnership.

In an attempt to keep the 60% interest deduction, I have advised client B to make 60% of the mortgage payment out of her rental account and client A to make

40% of the payment out of her personal account. (neither client can itemize).

Have I given bad advice? Have I preserved the deduction? ================= That still doesn't mean there's not a partnership hidden in there that the IRS wants a 1065 for.

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 the mortgage, and the other person

received Form 1098, report your share

of the deductible interest on line 13. At-

tach a statement to your return showing

the name and address of the person who

received Form 1098. On the dotted line

next to line 13, enter "See attached."