Can a couple claim a home on their taxes if a parent’s name is on the loan?

Can a couple claim a home on their taxes if a parent’s name is on the loan?

by Susan E. S. Howe, CPA | Jun 03, 2019

askacpaiconMy father helped us get a mobile home. His name is on the loan, but my wife's name is also on the house title (not on the loan, though). All the fees, taxes, loan monthly payments, and everything has been done by my wife and me. (We have checks to prove it all came from our account.) When it comes time for tax season, can we claim the house on our taxes since we file jointly?

As long as the mortgage is secured by a home owned by the taxpayer (in this case, your wife), and as long as you are the ones paying the mortgage payment, you are entitled to deduct the interest despite your names not being on the loan. The loan must be a mortgage secured by the home in order to qualify as a mortgage with deductible interest, however. If this is a personal loan not secured by the home, the interest is nondeductible.

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Answered by: Susan E. S. Howe, CPA, is principal of Howe Advisory in Strafford, Pa. 

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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