Question

Divorced, my name is on the mortgage but not the deed. I pay the mortgage as part of my alimony, can I claim the interest on the mortgage. My ex-wife's name is on both

Forum|Forum|7 years ago
June 3, 2019
5 replies
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Employee

To claim the mortgage interest deduction there are only two requirements you have to meet:
- Be legally obligated to pay it.
- Actually pay it.
That's pretty much it.

O

Opus 17

Employee

Who lives in the home? This is complicated, because if you own the home, the payments you make may be counted as a personal payment rather than alimony.

O

Opus 17

Employee

@Carl see pub 504.

O

Opus 17

Employee

@ffmedic795 you can't BOTH deduct the alimony AND deduct the interest, that's double dipping. See below or refer to publication 504 to see what part of the payment is alimony and what part is personal mortgage interest and property taxes.

O

Opus 17

Employee

There is a simple answer and a complicated answer.

The simple answer is that, because you do not own the home, the entire payment is considered alimony. You can deduct the payment, and your ex-spouse reports the payment as taxable income. Your ex-spouse can then deduct the mortgage interest and property taxes on schedule A as if she paid them directly (and assuming she itemizes her deductions).

This applies if you don't own the house.

However, if the divorce agreement says that she must sell the home and divide the proceeds with you, then the divorce order has made you an owner in fact even if you aren't an owner on paper. In that case, half the payment is a personal payment for your benefit. You can deduct half the property taxes and interest, and half the payment is alimony, and your spouse deducts half the taxes and interest. See Table 4 here https://www.irs.gov/pub/irs-pdf/p504.pdf and you may want to consult a tax professional in your state.

O

Opus 17

Employee

Also note to future readers: this only applies to alimony paid pursuant to a divorce that was entered into on or before December 31, 2018. For divorces finalized in 2019 and later, alimony is not tax deductible, so the rules on mortgage payments as part of alimony may change. That information has not been released yet.