Mortgage loan interest deduction

[NotEasy]

Mortgage loan has the name of both father and son on it. Son was the one who paid the mortgage in 2008 so he wants to claim the mortgage interest deduction. But they only have the social security number of the father on the Form 1098 (but they do have both the name of the father and the son on it). Would it cause a problem if the son claims the deduction?

[BOB W]

[QUOTE=NotEasy;75451]Mortgage loan has the name of both father and son on it. Son was the one who paid the mortgage in 2008 so he wants to claim the mortgage interest deduction. But they only have the social security number of the father on the Form 1098 (but they do have both the name of the father and the son on it). Would it cause a problem if the son claims the deduction?[/QUOTE

Not at all......... The deduction goes to the one that pays it>>by law. If it was paid with his own funds and not out of a joint account with his father.

[NotEasy]

[QUOTE=BOB W;75452]

Mortgage loan has the name of both father and son on it. Son was the one who paid the mortgage in 2008 so he wants to claim the mortgage interest deduction. But they only have the social security number of the father on the Form 1098 (but they do have both the name of the father and the son on it). Would it cause a problem if the son claims the deduction?[/QUOTE

Not at all......... The deduction goes to the one that pays it>>by law. If it was paid with his own funds and not out of a joint account with his father.

I know the IRS computer will match and verify mortgage interest deduction with social security number of the loan holder. So I was thinking that it will cause a problem when they try to do the matching.

[Larmil]

[QUOTE=NotEasy;75453]

I know the IRS computer will match and verify mortgage interest deduction with social security number of the loan holder. So I was thinking that it will cause a problem when they try to do the matching.

Our clients hire us to handle such problems.

[BOB W]

[QUOTE=NotEasy;75453]

I know the IRS computer will match and verify mortgage interest deduction with social security number of the loan holder. So I was thinking that it will cause a problem when they try to do the matching.

The facts are the facts and you can prove who paid it if questioned. I would not hesitate having the son deduct all the interest and RE if also paid by son.

[Kurly]

Form 1098

I just had the same situation. On the right side bottom in the account area was both the account # and the secondary SS#.

K

[S T]

Mortgage Statement

When the loan was applied for and approved, if both names were on the loan, then also both social security numbers were also recorded.

When the statement form 1098 is issued usually the first name and social security number is shown, and then sometimes the second name with no social security number.

As long as the son is recorded on the loan or has an equitable interest or financial responsibility for the loan, it should not be an issue for the son to deduct on his tax return.

Sandy

[newbie]

Attach an explanation in case it should be questioned.

[BHoffman]

Ed Zollars answers this

http://www.edzollars.com/2007-07-15.pdf

Ed is a heck of guy and his podcasts are very informative. Sandy was right on when mentioning "equitable ownership".

[S T]

Reference

Thanks BP for the reference you gave. I was familiar with Uslu V Comm, as NYEA had posted it to a post I made last year or the year before. But this reference gives more info.

Sandy