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mortgage interest deduction for non-owner

My name is not on the title or the loan. I am currently living in and am paying the mortgage and property taxes for this property.

Is it possible for me to deduct the interest and property taxes that I am paying? I have proof that the payment is coming out of my account.

Thanks in adavance. B.

Moderator: Most people will tell you "NO". I will tell you "It depends." If you are trying to get your 2005 return in the mail, do not take the deduction. Afterwards see a local tax professional and explain the situation to her/him. Maybe you can file an amended return.

Also this is a normal result of after-the-fact tax planning. Had you dealt with this issue last year, you would not be in crunch time.

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Reply to
boris.oks
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The Internal Revenue Code is very specific about this. For you to claim a deduction for mortgage interes and the taxest, you must meet several requirements: you must own the property, you must be personally obligated on the loan, and you must personally make the payments from your funds. Usually, if yoou are not on title or on the mortgage, you are SOL. In a few, very rare cases, if you have an equitable interest in the property, you may be able to claim these deductions. You should consult a professional about this before claiming any deductions, however. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

Reply to
L K Williams

I agree. For example, why is your name not on the title but you are living in the property and paying the mortgage? Is the plan that at some point you will take title? If so, it may be held in trust for you, so that you are, legally, the owner. You need to check with a good tax preparer, and possibly a real estate lawyer, to establish what you can do. Stu

Reply to
Stuart A. Bronstein

IF, and that's a big "if", you inherited the propery you ARE the owner and I would deduct the interest and taxes and let the IRS prove you are not entitled (they won't bother, and you are the "equitable owner"). Save the cost of a lawyer now as it will be more than the interst and penalties even if I am wrong. If you didn't inherit IF (again, big if) you are an equitable owner yo meet all the qualificatin and can deduct. Otherwise, if you're just a good guy, a renter, living with the owner, or it's your parent's house, or some other odd situation, forget it, it's not deductible by anyone. ed

Reply to
ed

Thank you everybody for information and suggestions.

Reply to
boris.oks

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