Question by petiteone74: Can I be added to my mother in laws mortgage?
My mother in law is looking to refinance and I was considering being added to the mortgage as part of the refinance. Is this possible? How do we go about each of us using the house as a deduction on our taxes? Do we split the interest for the year?
Answer by Huntsman
Only one person can take the tax deduction.
The person making the payments.
Do not do this unless you plan to live in the home.
This will reduce your debt-to-income ration if you ever need to make a loan such as to buy a car or even buy your own home 10 or 20 years down the road.
Also, if she misses a payment, it will affect your credit equally.
What if she passes? You’ll be 100% responsible for the loan
Do you really want to live in the same house with your mother in law for the next 30 years?
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The IRS will consider any interest you pay to be a gift to your MIL. She will be able to deduct it on her schedule A.
You won’t get a deduction at all. This is not your property.