Message Font: Serif | Sans-Serif
No. of Recommendations: 0
You need to watch out with the games you want to play. It can be structured to achieve what you want.

With mortgage interest-- The rule is you must be liable for the debt and you make the payment to get the deduction. If the payment comes from a joint checking account the IRS will take the position that it is 50/50 and you have to prove otherwise. So the way around this is to make the house payments from your own account. Let her buy the food or other nondeductible expenses out of her own account to fair.

Property taxes only require that the you be liable for the taxes and the taxes are paid, so it is possible to get a deduction for property taxes paid by someone else, i.e you pay all of the taxes but your girlfriend still gets half the deduction because she is also liable for the taxes. So again if you pay from a joint account the IRS would split the deduction assuming both of you are liable for the tax. If you pay 100% of the taxes and IRS was arguing your comeback would be that you paid all of the taxes to protect your interest in home.

The rule is you can't give away deductions, so by setting it up right you can show you are entitled to the deductions and stop the IRS in their tracks.
Print the post  


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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.