My ex-wife and I are jointly titled to the marital home, in which she is residing. Prior to our divorce, we refinanced the mortgage, but it was only in my name, per her requirements. As part of our separation agreement in our divorce, she wants to claim the mortgage deduction on her tax returns. Given that I (alone) am liable to the mortgage company, can she legally do so? If not, I assume that I am entitled to the mortgage deduction.

ANSWER

The BIDaWIZ Team's Answer:

She may be entitled to claim half of the mortgage interest payments. As per IRS publication 504 - Table 4, you can deduct half of the mortgage interest payments as alimony paid and your spouse must include that half as alimony. You can also claim as an itemized deduction, half of the interest as an interest expense. However, she can deduct the other half of the interest as well.