Question about "TAX Filing" Me and my fiance own home, Who will file taxes?

Can anyone tell me what to do about filing tax since we own home?

Will it be better if my fiance file it or Myself file it?

does it matter who earns less or more?

I heard someone says' Whoever earn less is the one can file a tax interest for your home'. Is that true?

We are not married yet and we both own this house.

Legally who can file it?

It really doesn't matter who files it, but I want to know the right ways?

Please serious answers only!

Here is a link that is the same question to that sites I posted.

http://www.mylot.com/w/discussions/431962.aspx

http://www.mylot.com/?ref=succed

Please serious answers only!

Update:

Hello is anyone here?

Seems like nobody knows what to do with owning a home with somebody and who can file taxes?

3 Answers

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  • Anonymous
    1 decade ago
    Best Answer

    The interest deduction belongs to the person paying intrerest so long as that person is liable under the terms of the loan, or owns the property on which the loan is secured.

    Where two or more persons own property, it is often possible to contrive to make the interest deductible by the person in the highest tax bracket as that person will benefit the most.

    Marital status is not determinative either of who deducts the interest or (under the IRS regulations) eligibility for exemption of up to $250,000 per person of capital gain on sale.

    If the bank's mortgage interest report does not make it obvious that the person deducting the interest was liable for it (i.e., the social security or ITIN belongs to another person) you may wish to attach an explanation to your tax return.

  • 1 decade ago

    It is really up to you to decide who gets to claim the mortgage interest and property taxes, or the percentage that each will claim. However, whatever you decide on, you need to be consistent from year to year (i.e. you cannot do a 90/10 split this year, and then a 50/50 split next year).

    What you may want to consider is that for the one with the higher income, the deduction will have more "bang" by reducing the taxable income at the higher tax brackets.

    Also, the 1098 you will be getting from the bank to show the mortgage interest you paid (and property taxes if they pay it for you through escrow) will only show one social security number. Whoever has the 1098 in their name, that will be the person that the IRS will have record of for paying the mortgage interest. If you decide to split the deduction, you will need to attach a statement to your return and your fiance's to explain what is happening with the mortgage interest and property taxes.

  • 1 decade ago

    If the house is in both of your names, then the decision is yours as to who claims the mortgage interest on their tax return.

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