Filing separately. Must we share the mortgage interest deduction?
gsid...@gmail.com
divorce. Since that point I have been making the mortgage
payments. So for 2004, I took the mortgage interest
deduction. Soon To Be Ex (STBX), has delayed filing,
because he wants to see my tax returns and claim have the
mortgage deduction.
I combed through the info on irs.gov but couldn't find
anything on that. I called the IRS and they said the person
who pays takes the deduction (I have proof that I paid).
OTOH he called the IRS and claims that the IRS supports his
position.
Can anyone help? I'd like to be sure of my position, and
even some printed official guidance will help.
Thanks so much!
Ghina
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Rick Merrill
> My husband moved out in July of 2003 we would like to
> divorce. Since that point I have been making the mortgage
> payments. So for 2004, I took the mortgage interest
> deduction. Soon To Be Ex (STBX), has delayed filing,
> because he wants to see my tax returns and claim have the
> mortgage deduction.
>
> I combed through the info on irs.gov but couldn't find
> anything on that. I called the IRS and they said the person
> who pays takes the deduction (I have proof that I paid).
If you file Married Siling Separately only one of you can
itemize, hence only one can take the mortage interest
deduction.
Bob Sandler
> itemize, hence only one can take the mortage interest
> deduction.
That doesn't sound right. If MFS and one itemizes, the other
cannot take the standard deduction. Therefore, if one
itemizes the other normally itemizes also.
The OP's question, essentially, is whether actually having
paid the interest is a requirement for deducting it, or can
someone who was liable for it but did not pay it take the
gin...@gmail.com
David Woods, EA, ChFC, CLU
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
Why can only one itemize?
--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com
Nan, EA in LA
and did pay, you get the deduction. He who didn't pay -
can't.
Married Separates must both itemize or both take standard.
If you itemized, he has to also even if the standard would
have been better.
He's out of luck.
Nan, EA in LA
Frederick Jorden
> gsid...@gmail.com wrote:
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
Wrong. With married separate returns both must itemize or
take the standard deduction. The spouse who is named on the
mortgage or deed of trust and paid the mortgage gets the
interest and tax deductions on the house.
--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL kno...@bigfoot.com
(804) 320-6210 FAX (804) 320-6211
Barry Picker
> My husband moved out in July of 2003 we would like to
> divorce. Since that point I have been making the mortgage
> payments. So for 2004, I took the mortgage interest
> deduction. Soon To Be Ex (STBX), has delayed filing,
> because he wants to see my tax returns and claim have the
> mortgage deduction.
>
> I combed through the info on irs.gov but couldn't find
> anything on that. I called the IRS and they said the person
> who pays takes the deduction (I have proof that I paid).
> OTOH he called the IRS and claims that the IRS supports his
> position.
>
> Can anyone help? I'd like to be sure of my position, and
> even some printed official guidance will help.
You have to meet two criteria to claim a deduction for
mortgage interest (and real estate taxes). One, is that you
are liable for the payment, and two, is that you actually
MAKE the payment.
So, to the extent that YOU paid the mortgage, you claim the
interest deduction. To the extent that he paid it, he can
claim the deduction. If he paid none if it, that's how much
of the deduction he can claim.
Barry Picker, CPA/PFS, CFP
Jo Firey
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
Someone tell me this is wrong. Its early, coffee isn't
working, and I'm suffering from major brain fog.
But if one itemized, both have to, right? Please?
Jo (retired CPA)
Arthur Kamlet
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
If one of you files MFS then the other also files MFS,
unless there is a dependent child involved.
If both file MFS and one of you chooses to itemize, the
other's standard deduction is zero. So, in practice, both
must now itemize.
If one files MFS, that tax return is private and
confidential and need not be shared with anyone else unless
a judge says otherwise.
__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
Bryan Kellar
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
Oops, perhaps a slip there? If you file MFS, then either
both spouses must itemize or both spouses must take the
standard deduction.
The answer to the question is that the mortgage interest may
be taken by the person who paid the interest (i.e. the
payments), presuming that person is legally liable for the
loan. If the payments were made jointly, then you would
split them. If one or the other made the payments, then you
may deduct the interest for the payments you made.
Good luck!
Bryan
--------------------------------------------------------
Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org
Wayne Brasch
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
That is not correct! When you file married filing
separately, both spouses must either itemize or both must
take the standard deduction. I suggest that Ghina download
Publication 17 from irs.gov and see what it says about this
situation.
Wayne Brasch
Herb Smith
> gsid...@gmail.com wrote:
>> My husband moved out in July of 2003 we would like to
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
That is wrong. If you file Married Filing Separate, and one
of you itemizes, then the other MUST also itemize. The
mortgage interest deduction can only be claimed by the TP
who actually PAID it. Unless the payments were made from a
joint account, it looks like the OP should get the entire
2004 deduction.
Phil Marti
>> divorce. Since that point I have been making the mortgage
>> payments. So for 2004, I took the mortgage interest
>> deduction. Soon To Be Ex (STBX), has delayed filing,
>> because he wants to see my tax returns and claim have the
>> mortgage deduction.
>>
>> I combed through the info on irs.gov but couldn't find
>> anything on that. I called the IRS and they said the person
>> who pays takes the deduction (I have proof that I paid).
> If you file Married Siling Separately only one of you can
> itemize, hence only one can take the mortage interest
> deduction.
If one MFS filer itemizes both MUST itemize.
Whoever paid gets the deduction. In OP's case, a 50/50
split for the period when they were together (and, I assume,
contributing to the expenses) sounds reasonable.
--
Phil Marti
Clarksburg, MD
Harlan Lunsford
>>> My husband moved out in July of 2003 we would like to
>>> divorce. Since that point I have been making the mortgage
>>> payments. So for 2004, I took the mortgage interest
>>> deduction. Soon To Be Ex (STBX), has delayed filing,
>>> because he wants to see my tax returns and claim have the
>>> mortgage deduction.
>>>
>>> I combed through the info on irs.gov but couldn't find
>>> anything on that. I called the IRS and they said the person
>>> who pays takes the deduction (I have proof that I paid).
>> If you file Married Siling Separately only one of you can
>> itemize, hence only one can take the mortage interest
>> deduction.
> Someone tell me this is wrong. Its early, coffee isn't
> working, and I'm suffering from major brain fog.
>
> But if one itemized, both have to, right? Please?
Technically correct. However in practice, if one itemizes,
the other doesn't always do so. In fact they're rarely
even speaking to one another. Also in practice, IRS
doesn't even notice, or if it does, mostly doesn't force the
issue.
(Can you imagine ? on the phone: "Dahling.... are you
going to itahmize deductions this yeah?" "Well, hmm,
yes, honey dumpling, spose I will." (Sigh. "Well, then
I'll guess ah'll have to also, and start over at zero.
Well, ta ta, deah!"
ChEAr$,
Harlan Lunsford, EA n lA
MTW
> You have to meet two criteria to claim a deduction for
> mortgage interest (and real estate taxes). One, is that you
> are liable for the payment, and two, is that you actually
> MAKE the payment.
I think there is actually a third requirement, or at least a
modification to the second. That is, that the payment must
be made from SEPARATE FUNDS. If made from community property
funds, then a 50/50 split is what you get. If made from
"joint" funds, then ~perhaps~ a pro rata split (based on
"contribution") would be called for, but I suspect this
would also end up as 50/50 in most cases.
I don't think the original poster mentioned her state of
residence. If it is a community property state, you would
have to determine when, under applicable law, the
"community" ends. Mere separation may or my not end the
community. Thus, the taxpayer's wages may continue to be
"community funds" even though the couple has separately.
MTW