Deducting Home Mortgage Interest

[GTS1101]

Forgive me if I have asked this question before. It keeps coming to mind and I don't remember if it was answered. Often in my business I will have a situation where two sisters own a home and they both live in the home as their residential property. Many times both will be on the loan and both on the deed but only one pays the mortgage to the bank. The other takes care of the other bills for the household food, utilities, etc. When it comes time to prepare their tax returns as two single sisters who writes off the mortgage interest? Many times they will want to put it on the return that will benefit them more. So if sister A gets a greater refund by claiming it all then they put it all on sister A's tax return and split the refund. Can they decide each year as to which return they put it on regardless of who pays the mortgage to the bank since they both own it 50% each and both are on the loan? Or does the only person who gets to deduct the interest is the one who actually pays the interest and writes the check to the bank?

Thanks for your help!

[solomon]

The sister making the payments takes the deduction.

[Larmil]

What Solomon said!

Forgive me if I have asked this question before. It keeps coming to mind and I don't remember if it was answered. Often in my business I will have a situation where two sisters own a home and they both live in the home as their residential property. Many times both will be on the loan and both on the deed but only one pays the mortgage to the bank. The other takes care of the other bills for the household food, utilities, etc. When it comes time to prepare their tax returns as two single sisters who writes off the mortgage interest? Many times they will want to put it on the return that will benefit them more. So if sister A gets a greater refund by claiming it all then they put it all on sister A's tax return and split the refund. Can they decide each year as to which return they put it on regardless of who pays the mortgage to the bank since they both own it 50% each and both are on the loan? Or does the only person who gets to deduct the interest is the one who actually pays the interest and writes the check to the bank?

Thanks for your help!

However, I some unmarried clients who share a home and plan ahead. That is 'tax planning'. Usually that results in one files Sched A and the other takes the standard deduction.

[Joe Btfsplk]

However, I some unmarried clients who share a home and plan ahead. That is 'tax planning'. Usually that results in one files Sched A and the other takes the standard deduction.

I have the same situation. The male client's SSN is on the mortgage and he takes files Sch A and the female client takes the standard deduction. I calculate the amount he saved by itemizing and they split the savings.

[Bees Knees]

To answer the original post, both sisters could share a joint checking account and deposit joint money into it to share payment of the bills, including the mortgage. If both are joint owners of the house, both are on the mortgage, and both have an unlimited right to all funds in the joint account, then you could decide who gets the mortgage interest deduction and who takes the standard deduction.