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Author: jmrube01 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121174  
Subject: Splitting Mortgage Interest Credit Date: 3/29/2000 11:16 AM
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I've checked FAQ's, the 1040 instructions, and form 504 and can't really find a definitive answer to my question.

The question is do I have to share the MI credit with my ex-wife if she made no payments on the mortgage during 1999? She moved out actually in 98 and made no payments for the last four months of 98. There is nothing specified in our settlement agreement regarding the dispersion of the MI credit. The settlement states that I, as the petitioner, "shall retain the residence" and "will list it for sale within a reasonable period of time". It goes on to clarify the distribution of the proceeds from the sale of the property (I retain the first $18000 then any over that would go towards shared debts and split anything else remaining).

On the 1098 form there is verbage that would seem to support my arguement, something to the effect of if there is more than one persons name on the mortgage you are only entitled to that portion of the interest which you actually paid. I couldn't really find anything in the 1040 instructions. In form 504 there is a passage that made it sound like if I had made payments on her behalf that that could be considered alimony.

So, I see the resolution to this in one of three possible ways. 1) Since she was legally the co-owner of the property I have to split the credit. 2) Since she made no payments on the mortgage she is entitled to none of the credit. 3) The payments I made on her behalf would be considered alimony which she would need to claim as income. I, in turn, would then be able to deduct the alimony and we would split the credit.

Anyone had experience with this?

Thanks!
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32920 of 121174
Subject: Re: Splitting Mortgage Interest Credit Date: 3/29/2000 11:36 AM
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<< The question is do I have to share the MI credit with my ex-wife if she made no payments on the mortgage during 1999? >>

I assume you're talking about the itemized deduction for mortgage interest. You deduct interest you must be liable for it AND pay it. Since you paid all of it, all of the deduction is yours.

TMF ExRO
Phil Marti

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