Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: wsmit56 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Re: Splittling deductions on separate returns Date: 6/27/2011 9:17 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You are getting good advice from the others, but I can add another angle to this. Mortgage interest is typically reported on Form 1098. Form 1098 would show all of the mortgage interest for a particular loan. The potential problem comes into play because only one social security number is shown on the Form 1098. So the husband's social security number may be on the Form 1098, but not the wife's. When the IRS matches the mortgage deduction against their 1098 file, the wife would appear to have none. This could be fairly easily explained in a letter. The IRS will likely be agreeable as long as no one deducted more than their share. It should be noted that state law may come into play in terms of who is entitled to the deduction. To deduct mortgage interest, a taxpayer needs to 1) be liable for the debt, and 2) have paid the interest. Whether the taxpayer paid the interest may be determined by state law (i.e. community property laws). Of course, the facts and circumstances are important.
W. Robert Smith, CPA, CMA
Tax Preparer Learning Systems, LLC
www.taxpreparerlearningsystems.com
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement