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April 16, 2025
Question

My wife and I have a home. My wife is the only one on our primary residence. My in-laws purchased a home but I am the owner on paper. Would I count this as my property

  • April 16, 2025
  • 2 replies
  • 0 views
I do not pay anything on the second mortgage, my in-laws pay everything.

2 replies

SharonD007
April 16, 2025

If you are inquiring if you can deduct the mortgage interest and property taxes as an itemized deduction, it depends. Review the rules below:

 

There are requirements that you must meet to deduct the loan interest:

 

  • Your loan must be secured by your main or second home
  • Your loan must have been used to build, buy, or substantially improve the home that you used to secure the loan (You cannot deduct the interest if you used it for personal expenses.)
  • The total of your mortgage debt (acquisition and home equity) did not exceed $1,000,000 if you are using the Married Filing Jointly filing status since you secured your loan in 2016.

 

For more information, please review the TurboTax article Are Home Interest Loans Deductible On My Taxes?

 

IRS Publication 936 Home Mortgage Interest Deduction provides additional information.

 

You can deduct the amount of property taxes that you paid.  

 

To take these deductions, you must itemize your deductions instead of taking the Standard Deduction. For more information refer to the TurboTax Help article Claiming Property Taxes on Your Tax Return.

 

 

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April 16, 2025

@Pupitre1  if your name is on the deed, then yes, it is "your property". Presumably the mortgage is in your name as well.   

 

In essence, your parents are your tenants and they are paying you rent. That is taxable income to you. You can deduct the mortgage interest on your tax return.   The fact they are paying the bank directly (rather than paying you rent so you can pay the bank on the mortgage) doesn't change what is really occurring.