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You purchased a home with your parents you both live there you both pay a portion of the mortgage you both are on the title however you are the only one on the mortgage. Can parents deduct interest?
Wiki User
∙ 16y ago
No, according to IRS Publication 936 only the person(s) legally liable to pay on the Note qualifies to claim the deduction.
http://www.irs.gov/pub/irs-pdf/p936.pdf
Wiki User
∙ 16y ago
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Are adult children liable for parents mortgage debt?
No, not as long as they didn't co-sign the mortgage. However, if the parents have died and their property is subject to a mortgage the lender will foreclose on the property if the mortgage isn't paid. If the heirs want to keep or sell the property they must keep the mortgage payments current.
Should your parents have you on the title of their house to avoid forced sale?
If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.
If your parents took out a mortgage in their name how do you get a mortgage in your name for the same property?
A property cannot be mortgaged twice at once. Additionally, you must hold the title to the property to place it under mortgage. Unless the other mortgage is paid off and your parents give you the house, you will not be able to get a mortgage on it.
Does imputed interest apply to a 150000 home mortgage having a 0 percent interest rate when the parents are the mortgagee and their son and his wife are the mortgagor?
Yes, this is know as a gift/loan. The parents are deemed to make the loan at market interest rates. The parents should report the amount of forgiven interest on their tax return. There is a gift tax issue because of the forgiven interest, but no tax is likely, unless the parents are making other gifts as well. The dad may give their son and daughter in law each $13,000 ($26,000 total). Mom may also give them each $13,000. Between mom and dad giving to son and daughter in law, they may give $52,000 annually in actual gifts or forgiven interest. however, if the gift is over $26,000, they will want to file form 709 to show gift splitting.
Can a secound mortgage company make you pay for the mortgage if the owners my parents both past away?
No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.
How do I get my name off my parents mortgage interest statement from when the house was in my name years ago but changed?
If you signed a mortgage, your name won't come off until the mortgage is paid off.
Are adult children liable for parents mortgage debt?
No, not as long as they didn't co-sign the mortgage. However, if the parents have died and their property is subject to a mortgage the lender will foreclose on the property if the mortgage isn't paid. If the heirs want to keep or sell the property they must keep the mortgage payments current.
Should your parents have you on the title of their house to avoid forced sale?
If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.
Can you put life insurance on anyone like parents syblings or friends?
Yes, you may be able to buy life insurance on your parents and your siblings. If you are related to someone, you may have an insurable interest in them. However, there may not exist an insurable interest between you and your friends. If you rely on someone for financial support, life insurance may be purchased on that person., or if you are relatives.
If your parents took out a mortgage in their name how do you get a mortgage in your name for the same property?
A property cannot be mortgaged twice at once. Additionally, you must hold the title to the property to place it under mortgage. Unless the other mortgage is paid off and your parents give you the house, you will not be able to get a mortgage on it.
Does imputed interest apply to a 150000 home mortgage having a 0 percent interest rate when the parents are the mortgagee and their son and his wife are the mortgagor?
Yes, this is know as a gift/loan. The parents are deemed to make the loan at market interest rates. The parents should report the amount of forgiven interest on their tax return. There is a gift tax issue because of the forgiven interest, but no tax is likely, unless the parents are making other gifts as well. The dad may give their son and daughter in law each $13,000 ($26,000 total). Mom may also give them each $13,000. Between mom and dad giving to son and daughter in law, they may give $52,000 annually in actual gifts or forgiven interest. however, if the gift is over $26,000, they will want to file form 709 to show gift splitting.
Can a secound mortgage company make you pay for the mortgage if the owners my parents both past away?
No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.No. They cannot "make" you pay the mortgage. However, if the mortgage isn't paid the lender can take possession of the property by foreclosure. If you want to keep the premises you must arrange to pay the mortgages.
When parents die who pays mortgage?
The estate of the parent has to pay off the debts. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended. However, a mortgage runs with the land. If it is not paid, the lender will take possession by foreclosure.
Are you required to notify the mortgage company when your parents die?
The estate is
Can siblings take over late parents mortgage?
It is not likely to be allowed. The mortgage was an agreement between the parents and the bank. The bank may consider redoing the load with the new owners on it, but they don't have to.
What is the legal precedence between an earlier Partnership of children documenting equal interest in family property and the parents later Will directing interest in that same property elsewhere?
I have never heard of a partnership of children creating an interest in their parents' property. You need to provide more details. However, if the parents were the joint owners of the real estate by deed when the first one died, and had not transferred their interest by deed during life, then the property passes according to the provisions in the will of the surviving parent.
Can you deduct interest paid to your parents for a downpayment for a condominium?
Yes IF the loan is really a legal mortgage loan that meets the IRS rules for it to be a mortgage loan. This is possible when you and they meet the enclosed rules. Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. You can deduct home mortgage interest only if you meet all the following conditions. You must file Form 1040 and itemize deductions on Schedule A (Form 1040). *You must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them. Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender. *The mortgage must be a secured debt on a qualified home in which you have an ownership interest. (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. The term "qualified home" means your main home or second home. For details, see Publication 936.) For more information go to the IRS gov web site and use the search box for publication 936
