Welcome Guest. Register Now!  


For 2013 Tax Tips For Year 2013.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-05-2013, 12:44 PM
Junior Member
 
Join Date: Apr 2013
Posts: 1
Divorced in 2012, Mortgage and Property Tax deductions...

Hello,

I am trying to fill out my personal taxes for 2012. We were divorced in June of 2012. To complicate matters, we own a condo that is:

1) Deeded in both our names (and thus, property taxes list both of us)

2) Mortgaged in my name only

The divorce decree states that my ex-wife can continue living at the property until sale. She is responsible for mortgage payments and property taxes. I am responsible for the monthly condo fees.

With all of the above, how should we go about claiming the deductions? We were operating under the assumption that I would claim the interest, and she would claim the taxes, but with further research this probably isn't right. Can it be done that way in the eyes of the IRS if we agree to it? If not can they just be split 50/50 if we agree to it?

Many thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-05-2013, 09:58 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“With all of the above, how should we go about claiming the deductions? “===============As your name is on the deed and you actually paid the interest(up to June of 2012), you can claim the mortgage interest deduction on Sch A; the IRS requires that you actually pay the interest. If your name is on the deed but someone else pays the interest, you cannot deduct the interest. Conversely, you cannot deduct the mortgage interest payments you make if your name is not on the deed to the home. The only way to report your mortgage interest deduction is on a Sch A with your other itemized deductions. However, this doesn't always mean you should itemize just to deduct your mortgage interest. Instead, you should compare the total of all expenses you are eligible to itemize to the standard deduction available for your filing status. If the standard deduction is more, you will always save more in tax with the standard deduction. There is one instance when you are able to deduct condo fees as a valid expense on your individual tax return. That occurs when you use your condo as a rental property instead of a primary home. As a rental property, all fees for upkeep, maintenance and related expenses toward keeping the home rented are deductible on the Sch E. The Sch E is used to claim rental property income during a calendar year.





“We were operating under the assumption that I would claim the interest, and she would claim the taxes, but with further research this probably isn't right.Can it be done that way in the eyes of the IRS if we agree to it? If not can they just be split 50/50 if we agree to it?”======= I don’t think so;UNLESS you are responsible for mort int and pty tax and actually pay the int and tax, you can’t deduct it on your return. Real estate taxes are reported on line 6 Sch A. You can only include the amount actually paid for the year.For your spouse, the mortgage does not need to be in her name, but she must be on title and actually needs to pay it to claim it on her return.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mortgage Interest - 2012 da91crex For 2012 1 12-20-2012 09:08 PM
Home Mortgage Deductions fbrown1713 Itemized Deductions 1 02-05-2012 08:12 PM
Divorced: Who gets to deduct the mortgage interest? fierroots Itemized Deductions 3 01-25-2012 12:37 PM
Mortgage Interest and Property Taxes Energy Trader Itemized Deductions 0 03-28-2010 05:01 AM
Mortgage Interest Deductions - Married Filing Separate ajbarrick Itemized Deductions 1 03-13-2008 10:04 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.