My ex-son-in-law deducted mortgage and tax expenses on a home that he secured the loan for, was on title for, but never lived in the house nor contributed financially toward that in which he wrote off. This house was never his primary residence. It would not qualify as his secondary residence since he lived in a rental home. I’m thinking tax fraud. Any thoughts would be greatly appreciated. Thank you everyone
He had mortgage statements sent to where he lived, thus 1098 went there as well. My daughter. my husband and myself lived in the home. She was and still is working on obtaining ways to support herself. I paid for the majority of the house expenses incl. mortgage, taxes, insurance and normal daily living expenses.
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You cannot deduct anything you never paid.
I deduct on a couple of my homes that I never lived in, but they are rental properties, in my name, and I pay the interest, insurance and taxes.
You must be the person that paid anything you deduct.
And it’s easy to get caught – you must receive end of year IRS forms, in your name, in order to deduct this. I just use mortgage statements.
Of course he is in grave error. To deduct mortgage interest one has to be obligated to pay it and must actually do the paying.
If someone else lived in the house and paid the payments, the amount of the payments constituted rent your SIL should have reported. Then he could have deducted the expenses against that income on Sch. E.
Was it a rental property? “Rental income” includes rent, or any expenses paid by the tenant. If so, yes, he can deduct mortgage, insurance and taxes that he paid (plus a whole slew of other expenses).
However, if he never paid any of those expenses, of course he cannot deduct them, and of course it’s fraud.
if he paid the mortgage and taxes and insurance, yes he can use them as deductions. insurance can only be deducted though if it is a rent house that he collects rent on. home insurance is not deductible on a main home. How did he happend to get the tax info for the house? i mean if he secured the loan, title, even though he never lived in it, somebody is sending him the info. it could be fraud or he has more real estate tied up than you think he does.
As long as the people that occupied the property are not intending to claim it on their taxes, you should be able to. However you should consult a tax expert, not try to find out on the net!
The person that pays the mortgage is the one that get the deductions on their taxes.
Yes, he has committed tax fraud. Federal crime. It does not matter that no one else can claim it either. He is basically a landlord, this is not his residence.
You can not claim this either, as you are not on the mortgage.