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Can you deduct interest paid to your parents for a downpayment for a condominium?
Wiki User
∙ 13y ago
Yes IF the loan is really a legal mortgage loan that meets the IRS rules for it to be a mortgage loan.
This is possible when you and they meet the enclosed rules.
Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan.
You can deduct home mortgage interest only if you meet all the following conditions.
You must file Form 1040 and itemize deductions on Schedule A (Form 1040).
*You must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them. Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.
*The mortgage must be a secured debt on a qualified home in which you have an ownership interest. (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. The term "qualified home" means your main home or second home. For details, see Publication 936.)
For more information go to the IRS gov web site and use the search box for publication 936
Wiki User
∙ 13y ago
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On disability filing federal tax form not necessary but you want to deduct real estate taxes and mortgage interest?
This would not benefit you at all. What income would you have to deduct them from?
Can you split mortgage interst on income tax if 2 people own the property?
If you meet the requirements for deducting mortgage interest, you may deduct whatever interest you personally paid. You may not deduct interest that someone else (including the other owner) paid. The same applies to real estate taxes.
Can mortgage interest on second home be deducted on tax returns?
You may deduct your interest on your principle residence plus one other qualified residence.
Is the interest deductible when you use a home equity loan to pay off a second mortgage?
The interest on the second mortgage is deductible but not the home equity loan. If you could deduct the interest on the equity loan also, then you would be double dipping and the IRS doesn't like that. In every situation, one party can and the other party can deduct the interest. Someone has to pay tax on the money transfer.
Can you deduct interest on a home loan taken out from a relative not from a bank?
Here's what I found so far: To deduct interest payments paid as itemized home mortgage interest, the loan obligation must be secured by a recorded mortgage or deed of trust against the home. This can be doneby their signing and recording a mortgage or deed of trust to secure the promissory note.
Can you deduct interest from a signature loan?
"Personal" interest is NOT deductible.
Can you deduct credit card interest?
No
What is a interest bearing note payable?
Is interest deduct before the note payed out.
Tell me the truth about interest payment deductions on filing taxes?
If you itemize, you can deduct mortgage interest and investment interest.
Can I deduct interest on a personal loan used for home improvements?
no
Can you deduct the interest paid on state taxes on your federal income taxes?
yes
What will happen to your taxes when you own a home?
I think you can deduct your property taxes and the interest on your mortgage!
On disability filing federal tax form not necessary but you want to deduct real estate taxes and mortgage interest?
This would not benefit you at all. What income would you have to deduct them from?
Can you split mortgage interst on income tax if 2 people own the property?
If you meet the requirements for deducting mortgage interest, you may deduct whatever interest you personally paid. You may not deduct interest that someone else (including the other owner) paid. The same applies to real estate taxes.
What can homeowners deduct on their taxes?
If you file a Schedule A and Form 1040 return you can deduct your Mortgage Interest, Property Taxes, and Mortgage PMI on your 1098 form from the bank or mortgage company.
What will happen to your income taxes when you own a home?
I think you can deduct your property taxes and the interest on your mortgage!
Can mortgage interest on second home be deducted on tax returns?
You may deduct your interest on your principle residence plus one other qualified residence.
