My girlfriend and I own a home together. Who should claim the house?

Forum|Forum|6 years ago
June 1, 2019
2 replies
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We bought the house in December 2014, so we've lived in the house for just over a year. We have no children, just a dog. We're both planning on filing single. Who claims the house? Can we split it?

TurboTax Deluxe Online

Best answer by bwa

With joint ownership for unmarried individuals, each can only claim the portion of any expenses such as interest or real estate taxes that they pay.

If a Form 1098 is issued and does not include your social security number as the first borrower you need to indicate that in TurboTax. It permits you to state another individual received the Form 1098.

bwaAnswer

Employee

With joint ownership for unmarried individuals, each can only claim the portion of any expenses such as interest or real estate taxes that they pay.

Celery63Author

Hey bwa,

Thanks for your response. I think I got it, but would like a little more clarification.

It sounds like form 1098 will only be issued to one of us then. As we both pay for the house, does that mean we can both claim the expenses by this indication in TurboTax you mentioned, or can only the person who's name shows up as the first borrower on form 1098 claim the expenses? If we can both claim it, is it more beneficial for both of us to, or should only one person claim the expenses?

Teacheraskingaquestion

Hello,

I’ve read through these responses and haven’t gotten a fully clear answer. My fiancé and I are figuring out taxes. We each own the house and it’s split between us. We have a joint account where all of our money goes and the credit cards we pay things for are under my name so it’s like I pay the expenses while she pays the mortgage. All expenses and mortgage payments come out of the same account which is shared. She makes more than I do. Is it possible for her to claim the entirety of the mortgage interest and taxes, while I just do the standard deduction? Or do we each have to claim a portion of it?

IF we each have to claim a portion, can it be where she claims a larger portion of it due to our salary differences so we can see a larger deduction for her?

We are not married so it seems we might be able to have her have the deductible but I’m not sure.

Thank you.

AmyC

Employee

1. A shared account means together you are paying all the bills. Only you two know who puts in how much and how you figured the amounts going in and for which bills. The IRS does not want you claiming something you are not entitled to claim. You are both entitled to claim mortgage interest if the house is in both names. You are not required to claim the mortgage interest and most people don't.

2. That said, the IRS believes you should claim the part for which you pay.

The IRS doesn't have much to say which makes it harder. The only thing the IRS says is what to do if you don't get the interest form, as seen on page 11 of About Publication 530, Tax Information for Homeowners is:

More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your paper return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 8b, and enter “See attached” to the right of that line.

3. Since she earns more, chances are she pays more or maybe all of the mortgage, depending on how you set up your finances.

However, most people take the standard deduction these days so the chances are high neither of you itemize but maybe one of you can. As a couple that has set up your finances, you can arrange them to pay bills as you please. The IRS has this chart of deductibility from Pub 936.

This would be a judgement call on your part for what you feel could be proven to the IRS, if they ask someday. Just for kicks, put it all in and see if it even matters. It may not matter and then you won't need to worry. If you both end up with the standard deduction, no need to decide anything.