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Claiming mortgage interest and property tax as deductions

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  • Claiming mortgage interest and property tax as deductions

    We've found ourselves in a situation that isn't easily google-able, and was hoping for some advice. We are two surgical residents who are long term partners and share a mortgage. However, we are not married, and file income tax as individuals. Obviously we aren't looking to both claim the full amount of the interest and property tax (unless that's kosher, but I can't see how it would be), and I was looking for some guidance or resources to discern how to not miss these deductions. Can we just swap years on this? I.e. I claim it all this year and my partner deducts it next? We are titled as a joint tenancy if memory serves. It doesn't make sense for us to itemize unless we take the full deduction on these two items, but together with state and local income tax it would be a substantial savings over the individual standard deduction. Thanks all.

  • #2
    Welcome OP!

    Good question. Don't know--hence 22 views and no replies.

    Options: Turbo tax and ask an advisor option would be an option as this is a very specific area. TT forum also may be a worthwhile place to check if no one here has an answer.

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    • #3
      The primary person on the mortgage and the primary person on the property tax. If it is joint, seems like you might both get 1/2 apiece each year. The mortgage is reported on one social security number. The property tax has a name on the invoice. Joint split, one name well that’s who gets it.
      Legal ownership gets the deduction. You won’t be able to alternate from the sounds of it. Need to look ahead how the eventual sale exemption will be handled.
      The easiest way would be to settle the tax savings between the partners. One more bill to split.

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      • #4
        Yes, you can do this. All you have to do is alternate years for making the mortgage payment. If it works out that one partner will benefit more from the deduction, that person should make the mortgage payments and you can make up the cost-sharing deficit in other areas.

        Owning property together as an unmarried couple is a minefield. Be sure you each have solid estate plans in place, durable POAs, medical directives, and any other documentation that might clarify who gets to make decisions in the event of tragedy. Update bene’s on all policies and retirement plans to reflect your wishes, also. This is something we do a deep dive on during financial planning - be sure you have the appropriate advice from the appropriate professional, not simply a free online forum.
        Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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