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 others 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, You Money Magazine
Education/Credentials BBA, Baylor University.
Awards and Honors My website http://www.IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 12/19/2007 Subject: Rental property & mortgage interest exp under joint co-owners
Question Hi, This might be a more complex question but I need to find a right answer. If a rental property has the mortgage only under one co-owner's name but the title is held under both co-owners.
Would the co-owner whose name is not on the mortgage be able to still take the mortgage interest paid as an expense when calculating the Federal taxes?
Answer In order to deduct mortgage interest, the following conditions must be met:
(1) You must own (or co-own) the property,
(2) You must actually make the payments, and
(3) You must be obligated on the note
If only one owner is obligated on the mortgage, then only that owner can take the deduction.
If this were operated as a partnership, then everything could be split per the partnership agreement on the 1065 and distributed on the K-1.
If we are talking about a married couple, then it does not matter on a joint return.
