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On Apr 10, 6:43 am, "John A. Weeks III" <j...@johnweeks.com> wrote:
> In article <1176184612.800028.300...@y80g2000hsf.googlegroups.com>,
>
> shasha-0...@hotmail.com wrote:
> > My husband's and his parents' names are on a property that we all live
> > in but only the father's name is on the mortgage. My husband is paying
> > the mortgage. (my husband might need to take student loan out in the
> > future so therefore his name isn't on the mortgage) Can he get tax
> > deductions even though he isn't on the mortgage but he is on the
> > property? My second question is how will the value of the house
> > legally be divided when they sell the house? Is there a contract or
> > legal form that can protect my husband's contributions towards the
> > house?
>
> As far as I understand, it has to be your mortgage and your
> house in order to take the mortgage deduction. But that is
> why they make tax accountants--I would suggest calling one and
> finding out for sure. Each situation is different.
That's would be my understanding too. Unless the mortgage is
actually in your husband's name, then while it may be secured by
jointly owned property, it isn't considered his debt for tax purposes
and the interest would not be tax deductible. The parents names and
SS# will be on the 1099 form that shows the interest paid. Are they
taking the deduction?
>
> As far as the sale, your husband would have to sign off on any
> sale since he is on the deed. He can block any sale that isn't
> to his liking.
>
> -john-
That's true, up to a point. Ultimately, if there is no agreement
between the parties and the parents wanted to sell, they could go to
court, which would then force a sale and decide how to split it up.
However, the fact that you're asking here how the equity will be
divided up, indicates you could be headed for big trouble. This
should have been clearly established up front and should not be left
up to some future determination. Suppose, for example, the parents
are killed in an accident. Then what? Do they have a will? Who
gets their share of the house? . I would consult an attorney to get
the appropriate legal agreements are in place.
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Re: Division of the value of the house
