Will She get to deduct 100% ?

[TAXNJ]

QUESTION: Would the ex-wife be able to deduct 100% of both Real Estate Tax and Mortgage Interest?

SCENARIO:

• Ex-Wife pays 100% of both Real Estate Tax and Mortgage Interest per the divorce agreement

• However, both ex-Wife and ex-Husband still own the house (ex-wife lives in the house and ex-husband does not)

Mortgage Interest: The TAXBOOK on page 4-11 states “Legal Liability to Make Payments” and references both Reg. and Court Case – seems that ex-wife may take 100% deduction

Thanks in advance

[BOB W]

That is also my understanding also... Payer from own funds gets the deduction. In a community property state the answer may be different.

[Lion]

Agree

She has to be liable AND she has to have paid. If she paid 100%, she can deduct 100% in your scenario. Her ex would not be able to deduct anything, because he did not actually pay anything. Don't know how community property states handle that. And, if paid from a joint account, all bets are off!

[WhiteOleander]

I am in a community property state. If the divorce is final and they are no longer married, there is no community property. It is just two separate people who own the property together. So, if I remember correctly, each person in that situation can only deduct the payments they actually made. So, in this scenario, she gets it all, he gets none.
JMHO

[Matt Sova]

Agree

I concur with all answers above. She is liable for the expenses and she paid them. She gets the deduction.