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» From: Ohio Dear TaxMama: My domestic partner & I own a home together. We don't have separate funds. Can just one of us deduct the interest on the house or do we both need to? Thanks! John Hi Guys! Here's the deal. First thing, if you're both on title to the house, you're both entitled to use the deduction. Next issue, you can only take the deduction if your money is used to make the payments. So, for this purpose, commingling funds is perfect. You both put all your money into the account. Now, as long as each of you has put enough money into the account to cover the payments, either of you may take the deduction. If only one of you put enough money into the account, you may split the deduction - or give it all to the person who, essentially paid it. In other words, you have lots of options - and you're in a position to decide how to use the deduction. So, yes, sounds like the one with the higher income could go ahead and take the whole deduction if it's more beneficial for you. (Sheesh, long-winded! Couldn't I just say 'yes'!?) Best wishes, Eva Rosenberg Your TaxMama  |
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