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URL:  https://boards.fool.com/this-might-not-be-the-right-area-to-ask-if-not-21689596.aspx

Subject:  Re: Who gets house tax deduction Date:  12/2/2004  5:11 PM
Author:  irasmilo Number:  74370 of 131788

This might not be the right area to ask, if not please send me to the right one. But I have a question about tax's and owning a house. I understand that if I own a house I can deduct the % paid on the loan.

So the question is, my sister and I purchased a house 2 years ago and she has purchased another house with her new husband about 8-9 months ago. She had to lie on the mortgage and say she was living in both houses. Because part of our loan FHA loan stated that we had to live in it for X amount of time.

But she lived in our house for 8-9 months, so can she deduct that for tax's. She is still liable for the debt, but she doesn't help me pay for the house anymore. So do I apply for all the tax deductions when it comes time to do tax's.


Simple answer. In order to deduct the mortgage interest and/or real estate taxes, you have to be legally responsible to make the payments and you have to actually make them. So, both you and your sister are legally liable for the taxes and mortgage. That's step one. To the extent that she paid the taxes/mortgage, she can deduct her payments. She doesn't have to live in the house. You can deduct real estate taxes for as many properties as you own. You can deduct mortgage interest on up two personal use properties simultaneously.

Ira


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