I rented my house and the renter's paid the mortgage payment. The mortgage is in my name. Can I claim the interest? If I cannot, do I have to let them claim the interest payment?

ANSWER

The BIDaWIZ Team's Answer:

You should be able to claim the interest paid as part of your rental property as referenced in IRS publication 527 and IRC Section 163. Please note that a taxpayer can deduct interest paid on a mortgage if they are the legal or equitable owner of the property even if they are not directly liable on the debt. You appear to be both the owner and even liable for the mortgage and thus should be able to claim the interest paid. Did you or the renter's directly pay the mortgage? It would be surprising to us if the renter's sent the bill to the lender. Even so, they wouldn't be able to claim the interest as they aren't the owners of the property.