I've been supporting my mother while she struggles to make mortgage payments on her home. She's since transferred the deed to me. Can I deduct the mortgage payments I make on her behalf even though I'm not liable for the mortgage?

ANSWER

The BIDaWIZ Team's Answer:

You do not necessarily need to be liable for the mortgage to claim the interest deduction as long as you have ownership of the home. It is not required in every case for you to have a true debtor-creditor relationship with your lender to take the mortgage interest deduction. Per Title 26 and CFR Section 1.163-1(b) of the internal revenue code, "interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness."