Second Mortgage

Do you know how a Mortgage Interest Deduction works?

You pay your payments for the second mortgage but do you know who really gets the “cut” everytime you send that pay cheque? It is called Mortgage Interest deductions.

So who deducts the mortgage interest paid. If you are paying a mortgage in some one else’s name then should it be on his/her tax return since the mortgage is in his/her name?

Or should it be on yours, since you obviously paid it. Is there a possiblity that I worry that if I put it on hers, the IRS will wonder how he/she paid all that interest, when he/she may not have even a third of that income.

The only person that is eligible to deduct the mortgage interest is the person that is on the mortgage. The mortgage company will send him/her a tax form at the end of the year that shows how much interest he/she paid during the tax year.

This interest deduction follows the social security number of the borrower.

At the closing of the mortgage loan, the borrower fills out a form that makes them eligible to deduct the interest.

Although I see your point since you paid the interest throughout the year, I do not beleive you can deduct on your tax forms.