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!!Unmarried Cpl./joint owned house - tax returns!!

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!!Unmarried Cpl./joint owned house - tax returns!!  Reply with quote  

Greetings. My girlfriend and I are ready and going to purchase a house soon. The only things standing in the way are a few details that need to be settled.
I am solely on the mortgage, but we both will be on the deed.
When filing next year, can we both file and obtain the tax refunds?
What if I go "stated" income, will I be hurting my return since the mortgage will have me making the sum of both our salaries? It will bascially be doubling my gross income per year.
Also - If my girlfriend is still listed as a dependent on her fathers, I will have to file alone. Can someone be on the deed to a house, and not file to recieve the tax returns for it? Bascially, I will file alone and recieve the entire tax break while she receives none (until i split it with her)
There are alot of ifs,ands, and buts behind this deal.
Thanks for all the help.
The confused Jon....
Post Wed Mar 01, 2006 3:54 pm
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Filing Tax Returns  Reply with quote  


There is a little confusion in the way you are explaining your situation. You must file as single if you are not married (unless you live in a community property state, which is another matter). If your girlfriend is claimed as a dependent on her father's tax return, you cannot claim her on your tax return. Go to the web site www.irs.gov and look for publications on dependents, etc. It doesn't really matter who has title to the deed. If you are itemizing deductions for interest paid on your mortgage, whoever pays the mortgage gets to claim the deduction. I hope this answers your concerns. If you need additional questions answered, reply to this thread.

JBendar Wink
Post Tue Mar 14, 2006 8:04 pm
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According to http://www.irs.gov/taxtopics/tc503.html

Interest is an amount you pay for the use of borrowed money. To deduct interest you paid on a debt you must be legally liable for the debt. Additionally, you generally must itemize your deductions, unless the interest is on rental or business property or on a student loan.

So if her name is not on the mortgage (and 1098 annually sent by lender) I doubt she could take any deduction for mortgage interest.

In fact I am not even sure what percentage of home value the lender would loan you if she was on the deed and not the mortgage (have you discussed that with a lender?). If she is on the deed, she might be able to pay for and deduct property tax, assuming it was paid directly (not from mortgage escrow), and she had enough deductions to itemize. But you may come out ahead overall taking the property tax deduction yourself and having her take standard deduction (once no longer a dependent on her dad's taxes).

It may be best to sit down with a lawyer and see how to handle this in case you someday need an equitable split. Better now than stuck with a home you cannot sell due to ex-friends name on deed (happens all too often).
Post Tue Mar 14, 2006 11:52 pm
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