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MFS - Who Claims the House?


ETax847

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I have a client who will be filing as MFS for the 2022 Tax Year.  He made the property tax and mortgage payments from his bank account in 2022.  His wife paid for 1/2 of these expenses throughout the year.  Are the each allowed to claim 1/2 of the prop taxes and mortgage interest, if the payments were made only from the husband's bank account?

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Read through this IRS info.  https://www.irs.gov/publications/p936  If they are not in a divorce/separation scenario then split it or do whatever is more advantageous.   If one spouse is not on the loan agreement, then you can attach a note stating that the interest he or she is deducting is in another's name.  Be sure to attach a note stating the mortgage owners name and the 1098 info on that return.  Even if they are in the process of a divorce, a signed document, attached to the return of the one claiming said interest will suffice.  Have both sign the attached note if applicable. 

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22 hours ago, Pacun said:

Which one is your client? As you can see, you might have a conflict form the get go.

They married couple are both clients, but will be filing their taxes separately.  They were wondering how to split up their itemized deductions, 50/50 or is it deductible only to the individual whose bank account the payments came out of?

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19 hours ago, Lion EA said:

Who is legally required to pay them? Who actually paid them? Pacun's question is key.

The house is in the husband's name so he is technically required to pay them.  The wife shares the expense by paying 50% of the property taxes and 50% of the mortgage, but she pays her husband directly, and he pays the bills from his own bank account

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Going forward, suggest they use a joint account for potential deductions, such as mortgage interest, property taxes, donations, etc., to make their options easier.

Not substantial authority, but a starting point with other links: https://www.irs.gov/faqs/itemized-deductions-standard-deduction/other-deduction-questions/other-deduction-questions

Then you'll want to dive deeper into your research, such as AnswerConnect with source material, Master Tax Guide, and the IRC.

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