Mortgage taxes and itemizing multiple mortgages?

micksean · Joined: 22 Jan 2008 Posts: 1 1.63 Dollars($)

here is my situation. my parents own a house and the mortgage is under their names. they have VERY low income so every year at tax time i itemize the mortgage interest and get a huge tax refund as a result even tho the mortgage is in their names. Now my dilemma is this...i plan to buy my own house with the mortgage in my own name. can i itemize the mortgage interest from both properties and get an even HUGER refund?

sara

Hi Micksean,

Welcome to the forums.

Since your parents own the home and have their names on the loan, they should itemize the interest. That's how it works. But I'm not sure as to how you are able to deduct taxes on the interest.

As far as deductions on the interest from both properties are concerned, that can be done provided you own both the homes and have your name on both the loans.

Take Care

michelle · Posted: Mon Jan 28, 2008 6:19 am Post subject:

Welcome to the forum micksean,

The interest is being reported to your parents so I am confused as to how you have been able to claim the deduction.

As Sara noted, you should be able to claim the interest on both homes provided the mortgages are in your name. If your name is not on the mortgage, you should not be able to claim that interest.

In a nutshell, whomever receives the 1099 from the lender is the person who can claim the deduction.

jheard · Posted: Mon Jan 28, 2008 8:52 am Post subject:

You cannot claim mortgage interest deductions unless you are the owner of the property and liable for the mortgage. It seems you are wrongfully taking the mortgage interest deduction on your parents house.

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