Hi All!

Thanks in advance for taking a moment to read this.

Here's my tax scenario:

I am just completing my 2014 Returns. I get a 1098 (Mortgage Interest Paid) on my parents home. I qualified for the mortgage for them and they legally own and pay all mortgage payments on the property.

Because I'm the borrower on the bank loan, the 1098 comes to me. My parents use the 1098 as a deduction, since they can paper-trail that they make ALL the payments (beneficial owners).

How do I account for it on my return, being that the IRS and State see that a 1098 was issued to me and will question how my gross income suffices to pay such an expense mortgage? My income does not support that of the 1098 figure.

If I leave it off of my return all-together, would this be the correct method of handling such a scenario?

THanks