Deducting Mortgage Interest and Property tax?

Question

My parents are offering me to put my name on the home title. They think this will let me deduct the mortgage interest and property tax. Is this true? Are there any things on the side I should know about before I do this?

Answer 1

you will only be allowed to deduct the those things if you actually pay them.  As for the loan, YOU must be the person legally responsible to pay it to be allowed to deduct it. so your name must appear on the year end paperwork.

Answer 2

you must be the debtor. Title holder doesn't tie you to the mortgagor.

Answer 3

They are wrong.

Mortgage interest is charged by the lender and has everything to do with the loan (debt) and nothing to do with actual ownership of the property (asset).  

Property tax is paid according to who owns the asset and there they might have a point.  Since you can't legally both deduct the full amount, why don't they just give you the cash that represents whatever your tax savings would be?  Cost is the same to them and it is much easier.

Answer 4

Putting you on the title will not allow you to take the tax deduction for mortgage interest.  You will not be on the mortgage, so even if you pay the mortgage, you will not be allowed to deduct the interest.  If your name is on the title and you pay the property taxes, you could deduct those.

If your parents want you to own the home, they should discuss this with an estate attorney who can advise them of the best strategy to minimize taxes (you should probably inherit the home).