Consumption and Real Estate
Can I let fiance claim mortgage tax credit?
Question : Can I let fiance claim mortgage tax credit?
My fiance pays my mortgage payment but the loan and house are in my name only. Can he claim the loan interest tax credit? If so how do I allow it? What forms do I need?
He also lives here, so is it still a gift?
mortgage credit
Best answer:
Answer by Judy
No, if he’s not legally responsible for the payments, he can’t claim it. It’s a deduction, by the way, not a credit.
And if you aren’t paying it, you can’t legally claim it either.
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#2 written by STEVEN F 1 year ago
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#3 written by bostonianinmo 1 year ago
From what you say, neither of you can claim the mortgage interest deduction. (It’s not a credit, but a deduction.)
To claim the deduction, two conditions must be met. You must be legally obligated for the loan payments, and you must actually make the payments.
Your fiance isn’t legally obligated for the payments, so he can’t take the deduction. You didn’t make the payments, so you can’t take it either.
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He lives in your house and pays the mortgage. Does he pay it directly or give you the money? If he gives you the money, and then you pay it, you can deduct the mortgage interest and property tax. He cannot deduct anything on the house since he does not own the property.
Do the amounts he pays cover his share of the housing expenses, including mortgage, taxes, utilities, repairs, food eaten at home? If so, then he is not gifting you any money, just sharing expenses. If he pays so much that he provides you with over half of your support, you may be his tax dependent.
To be practical, an engaged couple sharing expenses like this is not a taxable event in my opinion. Others may believe that rental income or a gift has been given to you, but I don’t believe the IRS would consider that you are using your house for business purposes by letting your fiance live there and pay some of his and your expenses.