Posted on: 18th Jan, 2010 05:26 pm
hi all,
great forum,
i have a condo which my sister is on as title holder (tenant in common). she was on the original loan as a co-borrower, but just found out the made a mistake on the refinance in april 2009 and eliminated her as a coborrower and left her on only as a part title holder. this despite her making equal payments for the mortgage since 4/09.
is there any way i can add her back as a coborrower without refinancing?
can she still split the tax deduction despite not being named a co-borrower despite bank records showing she was paying for half of the mortgage each month?
thanks,
navs
great forum,
i have a condo which my sister is on as title holder (tenant in common). she was on the original loan as a co-borrower, but just found out the made a mistake on the refinance in april 2009 and eliminated her as a coborrower and left her on only as a part title holder. this despite her making equal payments for the mortgage since 4/09.
is there any way i can add her back as a coborrower without refinancing?
can she still split the tax deduction despite not being named a co-borrower despite bank records showing she was paying for half of the mortgage each month?
thanks,
navs
if it's been your habit for each of you to cite interest payments on your tax returns in the past, then i'd continue if i were in your shoes. that's just a layman's opinion, though. to get a true adjudication of the situation, you ought to speak with a tax professional or with the irs directly.
you could speak with your lender to see if they'd choose to have new documents signed for the existing loan, to get your sister's obligation cemented on it. i'm sure they'd be amenable to that. refinancing doesn't really make sense unless you better your position.
you could speak with your lender to see if they'd choose to have new documents signed for the existing loan, to get your sister's obligation cemented on it. i'm sure they'd be amenable to that. refinancing doesn't really make sense unless you better your position.
As George notes, we are not accountants. We can give our opinions about tax matters and we may be right or wrong. Only accountant can advise you as to mortgage interest tax deduction if not on the mortgage.
I will say. IRS Publication 936, Home Mortgage Interest Deduction, seems to indicate yopur sister may not deduct mortgage interest if she is not on the mortgage. One of the criteria is that there must be a legal obligation for her to pay the lender. She is not on the mortgage. There is no legal obligation.
She is on title. Property taxes are a deductible item. Maybe she can deduct 100% of the property taxes to make up for the fact she can not deduct any of the mortgage interest. It will not be an exact match, but, will allow some equitable distribution of tax deductions instead of all being lost.
I will say. IRS Publication 936, Home Mortgage Interest Deduction, seems to indicate yopur sister may not deduct mortgage interest if she is not on the mortgage. One of the criteria is that there must be a legal obligation for her to pay the lender. She is not on the mortgage. There is no legal obligation.
She is on title. Property taxes are a deductible item. Maybe she can deduct 100% of the property taxes to make up for the fact she can not deduct any of the mortgage interest. It will not be an exact match, but, will allow some equitable distribution of tax deductions instead of all being lost.
