Question for my real estate / mortgage / CPA friends or anyone who has experience in this area...There was a question in my Federal Income Tax class that said a husband & wife live in a house with her mother. They pay the mortgage, but the mortgage is in moms name. Wifes name is on the title & they claim mom as a dependent. Can they deduct the mortgage interest on their taxes? I said yes bc wife is both a legal & equitable owner of the property. Instructor said no bc title doesnt indicate ownership & wife cant claim a debt that isnt hers. Im confused & this specific scenario is nowhere in the book!! Ive heard of titles on cars, but not houses. I thought they were using the term title, meaning deed. Is the deed just the instrument that transfers ownership from one person to another & a title is something different? Can someone take out a mortgage on a home they dont have any ownership in? If two people have ownership rights in a property can one take out a mortgage wo the others consent? Help me understand this...its driving me bonkers!! Lol!
Posted on: Tue, 12 Aug 2014 00:26:34 +0000