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Old 01-25-2014, 03:20 PM
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Claiming Mortgage Interest post divorce

I finalized my divorce this year and a slight variation from most posts here still leaves my question unanswered.
I purchased the house prior to our getting married and it is in my name, as is the mortgage. She is not listed on anything. When we divorced I moved out and she stayed in the house with the intent of purchasing it (as soon as administratively possible, whatever that means). She and her new boyfriend have paid all the bills there for the majority of the year but have been unable to purchase it from me as yet.
With taxes here now, who gets to claim the interest?
She did make most of the payments this year, but everything is still in my name only...

Other posts make me unsure if she is even allowed to claim since she is not listed on the mortgage.

Thank you for the help.
Drew



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Old 01-26-2014, 03:05 AM
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Quote:
Originally Posted by Drewbian View Post


#1;I purchased the house prior to our getting married and it is in my name, as is the mortgage. She is not listed on anything. When we divorced I moved out and she stayed in the house with the intent of purchasing it (as soon as administratively possible, whatever that means). She and her new boyfriend have paid all the bills there for the majority of the year but have been unable to purchase it from me as yet.

#2;With taxes here now, who gets to claim the interest?
She did make most of the payments this year, but everything is still in my name only...

Drew
#1;I guess you need to provide repliers with accurate situation for accurate answer.it depends. since the house is in the name of only one the spouse, you, then onlyyiu have the right to claim the deduction even if they pay all bills; however, if the house changes ownership as a result of the divorce, then there will be some tax consequences. If your spouse takes sole ownership of the home, but you live in it/move out, your ex may deduct the full amount of mortgage interest. If your ex-spouse owns the home and lives in it, but you take responsibility for the house payments, then you deduct that money as alimony; your ex-spouse would have to report the alimony as her income, but could also claim the mortgage interest deduction as the owner. I.R.C. states that an individual shall be treated as using property as such individual’s principal residence during any period of ownership while such individual’s spouse or former spouse is granted use of the property under a divorce or separation instrument .Accordingly,you, a spouse, who has moved out whereby your spouse or former spouse is granted use of the house under a divorce or separation instrument should be able to continue to deduct interest on the mortgage that you pay aslong as you itemize it on sch a of 1040.

however, aslongas your ex will be staying in the house until it sells, If this went before a court, whether you were required to pay would depend on your and your ex's entire financial circumstances. As far as the bank is concerned, if she doesn't pay, they're coming after you as long as your name is on the mortgage/deed.


#2;as mentioned above.



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