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Although I'm in Puerto Rico, this is more of a general question in the US.

We recently purchased a house, and it's in my parents' name because they have excellent credit. But I'm paying the monthly mortgage.

We were talking about this, and our thinking is that my parents cannot deduct the mortgage payments because they're not paying for it. And I cannot deduct the mortgage payments because the house is not in my name.

Is that train of thought correct?

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    What do you mean by "deduct the house"? You mean the mortgage interest? If that's true than I think you are correct on both counts. – D Stanley Mar 26 '18 at 15:45
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You are correct. Publication 936 says, “... home mortgage interest is any interest you pay on a loan secured by your home.... You can deduct home mortgage interest if all the following conditions are met. ... The mortgage is a secured debt on a qualified home in which you have an ownership interest.”

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You're making a mistake.

Rent the house from your parents. Have them pay the mortgage with your rental payments.

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