client has his name in two houses in the title. However, mortgage was taken by his brother for one houses and he has his name in another house. Can he not claim the house that is under his brother's name for the mortgage?
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Not his debt
Nope. A taxpayer can't deduct the interest on someone else debt.Roland Slugg
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I agree. The person deducting must be responsible for the debt.Comment
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May be. You have not posted enough detail to know. Do a search on beneficial ownership.Originally posted by muddin001 View PostComment
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But if it were rental property he could trace could he not?Originally posted by Roland Slugg View PostJGComment
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According to the income tax regulations, at ยง1.163-1(b), "Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness." emphasis added
I think the idea is to treat debt as a property owner's debt (for purposes of deducting interest he's paying) if he would lose the property if the debt weren't paid, even though he's not directly liable on the debt....Comment
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