We are unmarried co-owners of a home. We pay all expenses for the mortgage and taxes from a joint checking account. We wish to claim the mortgage interest on our tax return. We want to claim the 1098 mortgage interest in alternate tax years. One of us will claim for 2013 and the other in 2014 and so forth. The 1098 only shows one of our social security numbers, but it does show both of our names. Could this cause any problem with the IRS?

ANSWER

The BIDaWIZ Team's Answer:

The 1098 form is provided by the lender to the mortgage holder and the IRS to show the total amount of interest paid. It doesn't indicate who is able to claim the deduction. In addition, as referenced in IRS publication 527 and IRC Section 163 a taxpayer can deduct interest paid on a mortgage if they are the legal or equitable owner of the property. Both taxpayers are owners and liable for the mortgage and thus should be able to claim the interest paid.