- #STAR RULER 2 HOW TO TAKE OVER DERILECT SHIPS HOW TO#
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Nonetheless she paid 100% of the property taxes due on the property for several years and she claimed a deduction for the amount paid. Thus, her undivided interest in the property was one-sixth. In this case, the taxpayer owned property as tenants in common with five siblings. The best discussion of this issue, outside the context of married couples is Powell v. There’s a 1971 ruling that applies this rule to spouses who own property as tenants by the entirety, but pay the interest and taxes other than equally.
#STAR RULER 2 HOW TO TAKE OVER DERILECT SHIPS FULL#
I can cite to plenty of authority for the proposition that so long as the person paying the interest and taxes has an ownership interest in the property then that person can deduct the full amount paid. Can A claim 100% of the deduction or should A be treated as making the payment on behalf of A and B – in which case A is making a gift to B as to half of the payment and A and B should deduct the amounts 50/50. In this blog post, I’ll take a stab at providing such a theory.Īssume, for example, that A and B are joint owners of the home, but A pays 100% of the property taxes and mortgage interest. But to be honest, in the past I’ve had trouble coming up with a satisfactory theory to support this result. I think the answer is yes based on existing authority. What if one partner pays 100% of the mortgage and property tax? Can that partner deduct the full amount of interest and taxes? The question arises regularly for same-sex couples who share a residence and also share ownership of the residence.
#STAR RULER 2 HOW TO TAKE OVER DERILECT SHIPS HOW TO#
This tells you how to report the shared deduction, but says nothing about how to allocate the deduction between the two borrowers. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Show how much of the interest each of you paid, and give the name and address of the person who received the form. If you and at least one other person (other than your spouse if you 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. For example, Publication 936, dealing with the mortgage interest deduction, includes a paragraph that says: None of the IRS publications that I’ve reviewed deal with the question of who gets to claim the deduction when the property is jointly owned. Given how often this question arises, it is surprising that the IRS has never clarified the rules. Or, who gets to claim the property tax deduction? Shared Home Ownership: Who gets to take interest and property tax deductions? DecempcainĪ common question on tax accounting blogs is who gets to claim the mortgage interest deduction when the home is jointly owned.