split mortgage interest

Thanks Charlotte 256.

I said exactly that to my client. However, here boyfriend's CPA said he could claim the whole thing. So my client checked with another friend who is a tax preparer and he also said the boyfriend could claim the whole thing.  So, not liking my answer, she picked up all her paperwork and went somewhere else. I just wanted to make sure I wasn't missing something. I want to make sure no one at H&R says "Who did that to you??"

They both admit they paid 50%. But they put their money in a joint account and pay all the household bills.

But what is the ratio of the money contributed to the joint account?

abc - I was wondering the same thing.   Also, what if they had separate bank accounts and one paid the full mortgage but the loan was in both names? 

Sorta what I'm trying to get the OP to think about, especially for 2013 planning.  It's not as black/white as it may appear.

I did do a lot of research. Pub 926 was vague at best. Most everything I found was supporting the position they can only take what they pay and what they are liable for. The only exception I found was if person A's interest was in jeopardy. For instance if person B wasn't paying and the property was going to be forclosed. Then A could pay more and get the deduction for what was paid.

I don't think the ratio of income should determine the split. It makes sence it should be what % of the house you own and what % of the motgage you owe.

I think so, Frankly. I offered my client printed material supporting my position. I challenged her to get printed material supporting the other positions.  I did that because the clients parents are also clients and I'm hoping I won't lose their business also because my position wasn't popular.

I agree with your interpretation so far. But what if A & B had a notarized written agreement saying B will take 100% of mortgage interest deduction. Will that make any difference? Just asking!

I wouldn't think so unless when the house was purchased and the mortgage taken it was a notarized contract that A would own 90% of the house & pay 90% of the mortgage. I don't think 100% would work because A would have made the purchase alone and this would be a non issue.

Without any research my thinking on this was like TakGuyBills when I read it.

 Sorry, I'd like to help but I quit thinking after 7:00 pm PST on Saturdays.

I should probably try that too.  Today I should have quit earlier than 7:00.

 Actually, I stopped thinking at 7:00 am today but I didn't want to tell anybody.

Hummmm.  I don't think person A could  claim the full amount even if B gifts the money. I think the deduction is based on ownership and liability. 

Person A wanted the whole deduction while person B wanted to file as HH. I agree that's inappropriate. That is why my client person B was unhappy.

I think it should use the same logic as married filing separate. If one person itemizes the other is compelled to itemize also. 

Thanks to everyone for participating in this discussion. I appreciate the opinions. Maybe IRMN can weigh in tomorrow. 

 Ok, if you are going to make me think, I will.  If their incomes are about the same I would go with a 50/50 split.  If one has a significantly higher income I would split based on their respective share of income going into the joint checking account.  

Ok, now I really am done thinking for today.

 Thanks for the special appearance!