1098 Mortgage Interest and 2 owners

[photoman]

I have a couple(not married) each file single. They own a home together and the interest on the 1098 for home loan comes in on only one social security number on 1098. The previous tax preparer was allowing the entire 1098 interest to go on the one persons return that it is reported under. What is your opinion or any direction on this. anything wrong with this.

[jimmcg]

I have a couple(not married) each file single. They own a home together and the interest on the 1098 for home loan comes in on only one social security number on 1098. The previous tax preparer was allowing the entire 1098 interest to go on the one persons return that it is reported under. What is your opinion or any direction on this. anything wrong with this.

For starters whose name or names are on the mortgage note and also on the property deed.

[photoman]

both

For starters whose name or names are on the mortgage note and also on the property deed.

both names are on loan and deed

[AJsTax]

Actually, for starters

the information the IRS has to match to is the 1098. So the SS # on the 1098 is the safe way to report the interest. There are methods available to transfer some or all of the interest to the other owner. They can be owners on the deed or equitable owners, either one. I feel that you can use the interest in the way that is most beneficial to the joint owners as long as both have requirements to pay the interest and actually do pay for it.

[Gene V]

I have a couple(not married) each file single. They own a home together and the interest on the 1098 for home loan comes in on only one social security number on 1098. The previous tax preparer was allowing the entire 1098 interest to go on the one persons return that it is reported under. What is your opinion or any direction on this. anything wrong with this.

See Pub. 17 page 162 on how to report this, look under more than one borrower

[arlo]

more than one borrower on home

Your post is of interest to me since I have a taxpayer who lives with girl friend.
They bought a home together. Both of their names are on the deed and loan papers
The girl friends SS# is on the loan papers. Taxpayer claims both interest and property
tax decuction on his return. Girl friend takes standard deduction. Look Like a
red flag to me. What would you do?

By the way I could not find help with Pub 17 Page 162

[gkaiseril]

http://www.irs.gov/pub/irs-pdf/p17.pdf#page165.

The note is on printed page 162 but if you link to the IRS website it is PDF page 165 It covers 2 pages.

"More than one borrower. If you and at least one other person (other than your spouseyou file a joint return) were liable for and paid interest on a mortgage that was for your home,and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print "See attached" next to the line. Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13.

"Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her ahare is."

And if that does not produce the benefit for one or both, use yuor judgement.

[Gene V]

http://www.irs.gov/pub/irs-pdf/p17.pdf#page165.

The note is on printed page 162 but if you link to the IRS website it is PDF page 165 It covers 2 pages.

"

Interesting how they show the pages, on the bottom it is page 162 and on the top
where it shows pages its page 165

[gkaiseril]

Interesting how they show the pages, on the bottom it is page 162 and on the top
where it shows pages its page 165

That is the way Reader/Acrobat works unless the creator renumbers the pages for the cover, forward, introduction, table of contents, and other special pages. There are physical pages and then there are the numbered pages.