Filing Separately and Itemized Deductions
Gary Kleinman
pays the mortgage throughout the year. The couple files separately
(both names are on the mortgage). Can the one who pays the mortgage
claim the entire mortgage interest (and property tax) deduction
on his Schedule A or must the deduction be split 50-50 with the
other party?
Gary B.
Barry Rubin
The one who pays gets the deduction. It can be 100-0, 50-50, or 90-10.
Be certain to maintain records to justify the split.
--
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d006...@dcfreenet.seflin.lib.fl.us
Helen O'Planick
-> Newsgroups: misc.taxes
-> Organization: Internet Online Services
->
-> Suppose two individuals ( a married couple) own a house together.
-> One pays the mortgage throughout the year. The couple files
-> separately (both names are on the mortgage). Can the one who pays
-> the mortgage claim the entire mortgage interest (and property tax)
-> deduction on his Schedule A or must the deduction be split 50-50 with
-> the other party?
You got your answer, but I just want to add something and that is I will
assume you are aware that if one spouse itemizes, the other must itemize
or take -0- as the standard deduction.
Helen, EA in PA
Harrison Harris
>Suppose two individuals ( a married couple) own a house
>pays the mortgage throughout the year. The couple files
>(both names are on the mortgage). Can the one who pays the
mortgage
>claim the entire mortgage interest (and property tax) deduction
>on his Schedule A or must the deduction be split 50-50 with the
>other party?
>
>Gary B.
>The one who pays gets the deduction. It can be 100-0, 50-50, or
>90-10.
>Be certain to maintain records to justify the split.
---
Watch out! In some states, this is bad advice! In
community property states, like Texas, husband/wife must always
SPLIT the mortgage payment 50/50.
****** No matter what, in ALL states, If one spouse Itemizes,
the other MUST ITEMIZE. ********
--
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Barry Rubin
73237...@CompuServe.COM says...
Thanks for expanding upon my response which was incorrect for community
property states and misleading for other states since I did not mention
that if one spouse itemizes the other must. But, in these other states,
the spouses MAY split the deductions according to the percent each pays.
I apologize for the error and thank Harrris for the update.
I am in a state with no personal income tax. :-)
--
b...@netpoint.net
d006...@dcfreenet.seflin.lib.fl.us
Edward Zollars
: Watch out! In some states, this is bad advice! In
: community property states, like Texas, husband/wife must always
: SPLIT the mortgage payment 50/50.
One minor correction there--that is true if the payment comes from
community funds which covers the vast majority of all funds held by most
couples in community property states. However, if you could establish
that the funds used to pay the mortgage were separate property under
state law (very difficult, but not impossible) then the deduction would
follow the payment.
I'd phrase it this way--if you are married, living in a community
property state, and want to claim the payment came from separate funds,
you really need to see an attorney to confirm you really have funds not
subject to the community property rules.
Standard disclaimer: the above does not constitute tax advice and should
only be acted upon after obtaining independent confirmation from a local
tax professional that the above applies to your situation.
--
Ed Zollars, CPA Phoenix, Arizona
ezo...@primenet.com, ezol...@aztec.asu.edu
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On 3 Sep 1995 03:09:39 GMT, Harrison Harris (Just call me Harris)
<73237...@CompuServe.COM>wrote:
>Watch out! In some states, this is bad advice! In
>community property states, like Texas, husband/wife must always
>SPLIT the mortgage payment 50/50.
I can't speak for Texas, but in Washington and most community property
states, there is a differentiation between community property and
separate property and, if a spouse makes the payment from separate
property sources, that spouse would get the deduction unless it was
"gifted" to the other spouse.
In other words, the same law applies in community property states as
in separate property states - it's just that payment from community
property funds is treated as payment by each spouse equally. One-half
the payment from community funds plus separate payment from separate
funds equals the deduction of the spouse making the payment (again
unless it was "gifted" to the other spouse).
=Earl=
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>
>However, if you could establish
>that the funds used to pay the mortgage were separate property under
>state law (very difficult, but not impossible) then the deduction would
>follow the payment.
Sorry for almost duplicating the above post. I didn't read far enough
<g>!
However, with few marriages lasting and with the mobility of the
population, it actually turns out that it's not that hard to find
separate property in a community property state. (It is for me as I
was married right out of college (broke) in Washington (a community
property state), moved to California (a community property state), to
Idaho (a community property state) and back to Washington).