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Itemized Deductions Schedule-A


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Old 04-25-2016, 03:16 PM
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Can I claim Mortgage Interest and Real Estate taxes if I'm not listed on the Mortgage??

Hi,

As part of a divorce decree, I am currently eligible to claim all Mortgage Interest and Taxes paid related to our jointly-owned home even though my ex makes payments directly to the mortgage company each month. This is detailed in our decree, where she is responsible for paying the monthly mortgage and I receive the yearly interest and tax deductions related to these payments. Note: We are both listed on the current mortgage and deed to the property.

Now, we are exploring the option of refinancing the home since the interest rate is much lower than our current rate. Since she qualifies for the refinancing completely on her own, I would like to take my name off the mortgage if possible (so I don't have to provide all my financial documentation and go through the whole closing process with my ex), but I'm wondering if doing this will still allow me to still legally claim the interest and tax deductions as a legal owner of the home, since the new mortgage would be in her name only. She is agreeing with me in writing that she will not claim any of the interest and taxes and will give me a copy of the 1098 form she receives at the end of each year so I can claim the deductions on my taxes instead of hers.

So, my question is if I agree to take my name off the mortgage at the time of refinancing (but I still keep my name on the deed so I am still a legal joint-owner of the property), will I still be allowed to claim the mortgage interest and taxes paid as long as she doesn't (as detailed in our decree and as a legal owner of the property), or will taking my name off the mortgage make it so I won't be able to legally claim the interest or taxes anymore??

From what I have researched, it seems as long as I am a legal owner of the property (and keep my name on the deed), that I will be able to claim these deductions as long as she does not, but I want to make sure of this before I make a decision to move forward.

Thank you very much in advance for your input!!



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Old 04-25-2016, 06:07 PM
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yes I think so UNLESS your liability is removed from the mortgage on sale/refinance/assunmption ; in order to claim the mortgage interest deduction, you must have an ownership interest in a qualified property and be responsible for a secured debt. when you signed the loan documents, you mutually agreed to repay the loan until the debt has been satisfied. Despite the fact the divorce decree states that your ex will take care of the property and mortgage payments, it?s crucial that you realize this will not remove your liability from the loan obligation. Without being on the title of the property or having a written agreement that you?re an owner who is indebted for the mortgage, you cannot claim the mortgage interest deduction. To remove one spouse?s liability from the mortgage, the property will either need to be sold, refinanced or assumed.



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Old 04-26-2016, 09:35 AM
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Okay, great, thank you very much for your reply!



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