LeaseOptionKing - If I take over payments on a home using the Subject-To investment strategy, why wouldn't I be able to claim the interest of those mortgage payments as tax deductible? My name wouldn't be on the loan, HOWEVER, my name is on the deed and I am responsible for the mortgage payments...
I'm sorry - I just re-read the above post. I was confused about what was being asked. I understand now. BUT - my question still is - In my case of the Subject-To, I can claim that interest as tax deductible, right?
Yes you can deduct the payments.... but be careful that the person's whose name is actually on the loan does not try to deduct the same interest - as they will probably receive tax paperwork from the bank...
You can deduct interest payments as long as the recipient claims the income and you actually made the payments...
If the person whose name is on the loan tries to deduct it ,and so do you, the IRS will probably rule in your favor as you are the one who actually made the payments.
Hope This Helps!
No.
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LeaseOptionKing - If I take over payments on a home using the Subject-To investment strategy, why wouldn't I be able to claim the interest of those mortgage payments as tax deductible? My name wouldn't be on the loan, HOWEVER, my name is on the deed and I am responsible for the mortgage payments...
Does this reasoning make sense?
[addsig]
I'm sorry - I just re-read the above post. I was confused about what was being asked. I understand now. BUT - my question still is - In my case of the Subject-To, I can claim that interest as tax deductible, right?
[addsig]
Yes you can deduct the payments.... but be careful that the person's whose name is actually on the loan does not try to deduct the same interest - as they will probably receive tax paperwork from the bank...
You can deduct interest payments as long as the recipient claims the income and you actually made the payments...
If the person whose name is on the loan tries to deduct it ,and so do you, the IRS will probably rule in your favor as you are the one who actually made the payments.
Hope This Helps!
Jennifer
Serenity Accounting & Tax, Inc.
Yes, with sub2. No, with L/O. You are merely paying the Seller rent.
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If they can be fixed up quick and are well priced, look for hard money
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Do not advertise - See forum rules![ Edited by JohnMichael on Date 01/05/2005 ]