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: 12/7/2007 Subject: Separation and Mortgage Interest Tax Deductions
Question My husband and I have been living in separate residences for 16 months. He is staying in the home we own and I'm renting a condo. I am the source of income for both of us and pay all his living expenses in addition to mine.
If I buy a second home to be my primary residence and we file for a legal separation, how will mortgage interest deductions for the two residences be treated given he has less than $6000 annual income and I will continue to pay the mortgage for our current residence? Will I be able to take deductions on the second primary residence in which I live? At this point, we are uncertain about divorce, but plan to continue being separated. Thank you.
Answer In order to deduct the interest you must be obligated on the note, it must be secured by the residences and you must make the payments. It seems as if this will be the case. Therefore, unless the indebtedness exceeds $1,000,000, you may deduct all of the mortgage interest. If the debt exceeds this amount, your deduction will be limited accordingly.
