View Full Version : Tax Question

03-13-2008, 11:13 PM
I'm trying to help Mom with her taxes. Last year, she moved into a new home with my sister and brother-in-law. All three are listed as Payers/Borrowers on the 1098 Mortgage Interest Statement from the bank, but, there is only one Social Security Number listed (BIL's) and thus is reported to the IRS against only this number (note at the bottom of form 1098 states 'Interest will be reported on the Social Security Number for the Primary Borrower above').

Mom pays 25% of the mortgage and thus entitled to deduct 25% of the interest paid. Question is: How is this handled on tax form so as not to set off bells & whistles at the IRS (mortgage deduction claimed, but, not reported to IRS with Mom's SSN)?

Any advice would be appreciated!

03-13-2008, 11:43 PM
You can add a statement sheet to the tax return stating that interest is reported in the name of ,SS#, address, but this amount is paid by .....

03-14-2008, 12:13 AM
I would call the IRS and check - but I believe only one person can claim the interest deduction.

I co-own a house with my sister - I claim 100% of the interest - BUT what I do - is figure out her taxes - the normal way. Then run the numbers as if she could claim 50% - then out of my refund I give her the difference between the two amounts.

03-14-2008, 07:15 AM
IRS Publication 936 deals with deducting mortgage interest. This is from that publication:

"More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line.

Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her share is. "

03-14-2008, 01:50 PM
Thanks for the quick replies!