How do I claim mortgage interest when there is more than one buyer?
When you and at least one other person (other than your spouse if you file a joint return) are jointly liable for and pay interest on a mortgage for your home, you may still claim your share of the deductible mortgage interest. However, special reporting is required if the other person receives a Form 1098 showing the interest paid during the year.
Key Rules for Multiple Borrowers
- Attach a statement to your paper return: If the other borrower received a Form 1098, you must attach a statement explaining how much interest each person paid.
- Include details: The statement must show:
- The amount of interest each person paid
- The name and address of the person who received the Form 1098
- Deduct your share: You may deduct your portion of the mortgage interest on Schedule A (Form 1040), under the "Home Mortgage Interest" line.
Important Notes
- This rule applies only if you are not filing a joint return with the other borrower.
- If you file jointly with your spouse, you may split the deduction based on your respective interests, but no additional statement is required unless specifically instructed by IRS guidelines.
- Form 1098 is typically issued if $600 or more in mortgage interest (including certain points) is paid during the year on any one mortgage.
Source:
Publication 936 - Home Mortgage Interest Deduction
Publication 530 - Tax Information for Military Personnel
Schedule E - Supplemental Income and Loss
IRS Forms, Instructions, and Publications
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions before filing your tax return.