Thursday, July 29, 2010

Is there a way to claim mortgage interest you paid for some one else?

I made my mother-in-laws house payments for the entire year of 2006. Is there a way to use the interest for my deductions?Is there a way to claim mortgage interest you paid for some one else?
No, sorry, you can't take the deduction. To be eligible to take a deduction you must be legally obligated for the mortgage payments and actually pay the interest.





Therefore you cannot take the deduction as you are not legally obligated and she cannot take the deduction as she did not actually pay it.





You could preserve the deduction for her by gifting her the money to make the payments and have her make the actual payments. As long as the total payments for the year were less than $12,000 for the year there would be no gift tax consequences.Is there a way to claim mortgage interest you paid for some one else?
TFTP

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