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Child bought condo with parents help. Both names are on the deed. Child made the downpayment. Both were on the Purchase and Sale. However, the parents took out a home equity loan on their own house to give her funds for the purchase. The child's name is not on the loan. The child pays all the loan payments directly to their bank.
Can this child deduct the interest and taxes paid on their return?
Thank you
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I think I have read that if you have legal title or equitable ownership you can deduct the interest and taxes you paid, even if not directly liable for the loan. Only if they meet the requirements of equitable ownership. I think this person might be based on:
- On deed
-Maintaining property
- Insuring property
-Pay's property tax
- Paid down payment
Does this look better now?
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I think I have read that the mortgage must be on the property you own, not on Mommy and Daddy's place.
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interesting....have not seen that.
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And the loan must be secured by the residence.
The more I know the more I don’t know.
