Your son is going to take over paying your mortgage Can he deduct the interest on his taxes Does his name have to be on the loan the title both or neither?
Again - he can't just pay a mortgage on anyones house and claim the deduction...it has to be his residence. Then if he is paying it, on the title or not, there are court cases saying that basically he paid the interest to you and you paid the mortgage. But again...you better be able to prove it is his home.
An interest deduction is generally not allowed if the taxpayer's
liability is not primary and direct.. There is an exception to this
general rule that allows a taxpayer to deduct interest he pays on a
mortgage if he is the legal or equitable owner of the property,
even though he is not directly or personally liable on the bond or
note secured by the mortgage. The effect of this exception is to
permit the deduction of interest in situations when the
taxpayer-borrower is not personally liable on a mortgage of
property that is used as security for a loan made to the taxpayer.
The Tenth Circuit has stated that the concept of equitable title to
realty for this purpose is generally limited to two situations:
when legal title to property is held by a trustee, in which case
equitable title is said to be in the beneficiary; and when real
estate has been sold under a contract for deed with legal title
retained by the seller until the purchase price is totally paid, in
which case its purchaser is said to be the equitable owner during
the payoff period.