Here is the deal. My dad lent me money to buy a house. I have been paying him interest all year. It looks like I can itemize my deductions this year if I claim the interest. My question is, "can I deduct the interest expense on my tax return?"
JJ
JJ - You are actually paying him back? Good for you. Normally loans to children end up as gifts as opposed to loans. I speak from experience. I admire you.
You can deduct the interest if you meet certain requirements. Most importantly, for the interest to be deductible as a qualified mortgage, it must be secured (lien filed) on the home. If there is no security interest, the interest is not deductible as home mortgage interest. Check with an attorney if a lien has not been filed.
Larry Kopsa CPA
JJ
JJ - You are actually paying him back? Good for you. Normally loans to children end up as gifts as opposed to loans. I speak from experience. I admire you.
You can deduct the interest if you meet certain requirements. Most importantly, for the interest to be deductible as a qualified mortgage, it must be secured (lien filed) on the home. If there is no security interest, the interest is not deductible as home mortgage interest. Check with an attorney if a lien has not been filed.
Larry Kopsa CPA
