I am the primary borrower and she is the co-borrower. I already claimed the mortgage interest and property taxes on my 2010 return. Can she do the same? Or is it just the primary borrower that can?
THere is only one cow here. YOu and your sister can divide it up any way you want, but when you put the pieces together there can still only be one cow.
You and your sister should decide on percentages and put that in writing either permanently, or year by year. THen you both file a copy of the interest and propery tax statements along with your agreement. If you do not file those documents with your state taxes, then you keep them stapled and ready for the audit. It will pass.
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you definitely both cannot claim the same deductions
apparently the mortgage, property taxes are in your name and your SS#, you would be the one to claim
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If you have already claimed it she can’t. In the future if both names are on the 1099 the mortgage company send then you can trade off years. If only one name is on that form, that is who gets the deduction.
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You can only deduct interest if your personal residence is used to secure a loan.
If you want to share, what you do is make a "nominee" entry on your tax form. The person who’s name appears on the 1098 should report the entire amount for the year, then on a second line, make an entry that says "nominee", the second name and social security number, then a negative number reducing the deduction.
The second taxpayer then deducts the amount nominated.
You have to make sure that your name and social match, the amount of reduction matches what the second person claims, and you have to make sure both of you actually qualify for the deduction.
(You can treat the real estate taxes the same way, but the qualifications are easier. You get to deduct whatever you pay without regard to what kind of real estate it is.)
It’s in your best interest, though, to get together with your sister and work it out so that your combined tax refunds are the highest possible. There may be years when one of you won’t itemize, and it might be worth it for the other to claim the entire amount on their return.
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tro is right but if she is paying half then you need to compensate her as well. figure your taxes again as if there were No house and show her how much the difference is and if pay her half that total that is in your refund
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If the name written as : My name and My sister
Your name is first, you can claim the credit; if you do not claim, she could do
If the name was written: My name AND OR My sister
Either of you could claim. Also both could split the credit between
If you chose, you could split the credit between both.
But, every time the credit amount is low, it will not give you the desired credit
My advice, one year you, the second year hers.
Good luck
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While, technically, you are entitled to it since your name appears on the paperwork, if she’s paying half, you really should compensate her with half of the credit you receive for it.
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You both share the responsibility..but the one with the best credit has the most to lose..so if your credit is stronger make sure you keep up the paperwork…
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THere is only one cow here. YOu and your sister can divide it up any way you want, but when you put the pieces together there can still only be one cow.
You and your sister should decide on percentages and put that in writing either permanently, or year by year. THen you both file a copy of the interest and propery tax statements along with your agreement. If you do not file those documents with your state taxes, then you keep them stapled and ready for the audit. It will pass.
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