The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Mortgages and equal ownership||Date: 6/7/2009 1:44 PM|
|Author: JAFO31||Number: 106228 of 121219|
mispoken: "My girlfriend and I are going to buy a condo together in the next month or two."
Think long and hard about this choice. I am sure that Phil will be along sometime with his $0.02. If you still decide to do this, then spendsome time and money to obtain a good co-owners' agreement!!!
"The city of Chicago has a great tax incentive program going right now, but our two incomes combined will exceed the maximum income allowed for the program. I am considering just getting the mortgage in my name to keep us under the income limit. We both would still own equal parts and make all payments and down payments together."
You need to investigate further. I am uncertain whether any lender will loan you 80% of the value of the condo if you own only 50% of the condo.
"If we did something like that would we both still be able to claim mortgage interest paid and the first time home buyers tax credit equally?"
I amno tax expert, but defintely no on the mortgage interest; she cannot claim a deduction for paying interest on a mortgage that she does not owe.
"I'm just curious to know if the mortgage is in one name what the tax ramifications if any would be, she would still be on the title of the home if that is possible."
No sane lender will loan on the full value of the house and take a mortgage on only 1/2 the house!
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