OkieTaxGal Posted January 31, 2008 Report Share Posted January 31, 2008 This couple is divorced. First year to file seperate.....not mfs. She says divorce decree states she gets to claim interest on house. He's making the payment. she lived there about 8 months of last year. He did not live there at all. The house is on the market to sell. He is okay with her taking the interest. (He gets to claim the child). The 1098 is in both their names, the social is in his since he was the primary on the contract. His mother (who can't stand the exwife) is a tax preparer and told her ex daughter in law she can only claim 1/2 no matter what. What are your thoughts? Thanks Paula Quote Link to comment Share on other sites More sharing options...
jainen Posted January 31, 2008 Report Share Posted January 31, 2008 >>She says divorce decree states... " Never mind what she SAYS, take a look at the actual document. You're going to need it for your archive anyway. It doesn't matter that he has 1/2 title, and it doesn't matter that she moved out part way through the year. The good news is that it is probably 100% deductible as qualified mortgage interest. The bad news is that it's probably 100% taxable as alimony. Quote Link to comment Share on other sites More sharing options...
OkieTaxGal Posted January 31, 2008 Author Report Share Posted January 31, 2008 >>She says divorce decree states... " Never mind what she SAYS, take a look at the actual document. You're going to need it for your archive anyway. It doesn't matter that he has 1/2 title, and it doesn't matter that she moved out part way through the year. The good news is that it is probably 100% deductible as qualified mortgage interest. The bad news is that it's probably 100% taxable as alimony. Thanks Jainen. I never even thought about the alimony part. Quote Link to comment Share on other sites More sharing options...
GeorgeM Posted January 31, 2008 Report Share Posted January 31, 2008 >>She says divorce decree states... " Never mind what she SAYS, take a look at the actual document. You're going to need it for your archive anyway. It doesn't matter that he has 1/2 title, and it doesn't matter that she moved out part way through the year. The good news is that it is probably 100% deductible as qualified mortgage interest. The bad news is that it's probably 100% taxable as alimony. How can this be used as alimony payments? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 31, 2008 Report Share Posted January 31, 2008 To qualify as alimony, it has to state in the decree that his obligation to pay it stops with her death, which is something you have to read the decree to determine. Consider all the seven tests that must be met to be alimony. Quote Link to comment Share on other sites More sharing options...
jainen Posted January 31, 2008 Report Share Posted January 31, 2008 >>read the decree << Actually, I take it back. I don't think payments ever count as alimony if he is still on title to the property. Quote Link to comment Share on other sites More sharing options...
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