AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/30/2008 Subject: claiming mortgage interest
Question My grandparents recently fell ill and My uncle purchased their home. Via Mortgage. However, Due to illness following the purchase I have been making 100% of the payments. Is there a way to file and claim the interest for 2007 (purchase date 5-31-07) we were planning on quick claiming the house to me in 08'. Can I just claim the interest? Can we file jointly somehow since we reside together? He is self employeed and therefore pays no taxes unless there is income. Is all the interest lost? Since, he will fall below the tax exemption for earnings this year?
Answer In order to claim the mortgage interest deduction, you must actually make the payments AND you must be obligated on the mortgage. There is an odd provision of the code that provides that: If you live in the home, you might be able to establish that you had an equitable interest in the home and therefore entitled to the deduction. But unless you lived there, or were liable on the mortgage - I am afraid you cannot take the deduction.
