I bought a house jointly with my Pops in 07'. Do we split the deduction? If we don't will I lose big money?

If I don't claim the deduction on my taxes and let my father take full value how will it affect my return? I'm asking does it make a huge difference or small difference. The house was a new build and it finished in July. The equity hasn't climbed much in this current market. Both of our names are on the loan and title. AND if possible anybody got any extra hidden deductions hints I could use?I bought a house jointly with my Pops in 07'. Do we split the deduction? If we don't will I lose big money?
The rule on deductions is you take them in the % you own it and only if you pay it.





So if you own it 50/50, you pay the mortgage 50/50 and take the deductions 50/50. (See the instructions for schedule A for the notations to make if your ssn isn't on the 1098.)I bought a house jointly with my Pops in 07'. Do we split the deduction? If we don't will I lose big money?
Sorry, VB, but I have to disagree a little. In my experience as a taxpreparer, the person who's ssn is listed first should claim the entire amount (in order to match with IRS records), then that person can ';allocate'; part or all of the interest to any co-owners.





It would probably be best for you and your pop to have a CPA do your returns -- they can run several scenarios and find the best way for you to file.
v b is correct. The self-professed ';taxpreparer'; is not. There is no way to ';allocate'; any interest on a mortgage in the way that she suggests.
VB is correct.





Unfortunately, the myth that homeowners in such cases can split deductions any way they choose simply will not go away.


In this scenario, the father and the son can take deduction amounts only in proportion to what they paid during the year.





I would add, though, that with some tax planning for 2008 tax benefits can be maximized for 2008.

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