mortgage interest for couple shacking up

[Bill Tubbs]

Okay... when 2 single people buy a house together, how do you guys treat the property taxes and mortgage interest? Most younger people I get it would be to their overall benefit if one person could claim all the property taxes & mortgage interest -- that person would definitely itemized whereas the other person would just take the standard deduction.

But, when they're both on the title and both on the mortgage, doesn't it come down to who actually pays? If the payments are all from one person's single account does that one person claim all the expenses; but if the payments are from a joint account then they get split 50-50?

My immediate case -- woman purchased house in just her name (and just her name on mortgage) in Dec 2005; added long-term boyfriend to title in March 06; then in Aug 06 they refinanced with both names on... Don't yet know if the payments were made from her separate checking account or if from a joint account.

Bill

[Beth]

Mortgage Interest-

Assuming both are on the title and have responsibility for the debt, they are each entitiled to the interest and taxes deduction based on their indvidual contributions. If each have a checking account, and one pays, then usually they have decided that person pays the mortgage and gets the deduction, while the other pays other expenses.

IF a joint account, then either 50-50 or by percent of income.

In the case of your indvidual owning the mortgage for the first quarter, I certainly would appropriate that percent to that person.

[OldJack]

If who paid is in question... why not ask the taxpayers who they consider as having paid and deduct accordingly? After all it is their tax returns.