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Posted by Mike on July 4, 2007, 10:57 pm
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>> Clients divorced in 2007. The divorce decree states the male
>> (who I expect will continue to be our client) must make
>> payments on the house but it is in the x-wife's name and she
>> lives there, not him.
>>
>> Is there anyway I havn't thought of to claim the tax and
>> interest on his Sch A?
> Does the husband make the payments directly, or give the ex
> the money and she makes the payments?
>
> If the latter, you might be able to make a case for this
> being alimony or spousal support - deductible as an "above
> the line" deduction on his 1040 form. Concurrently, the
> ex-wife would have to claim this alimony as taxable income,
> but could deduct the interest and property taxes on her
> 1040/Schedule A.
>
> For him to be able to deduct these items on his Schedule A,
> he must have an ownership interest (taxes) or be liable for
> the mortgage debt.
>
> Moderator:
> Sticking ny neck out without reading the code: I would
> argue that the direct payments to the mortgage lender are
> for the economic benefit of the ex-spouse and as such are
> alimony unless the divorce decree or the code say
> different.
He makes the payments directly. BTW, one important piece of
info I left out......we're in TX and have no alimony here.
mike
Moderator:
Since Texas has no State income tax (yet!), there is no
Teaxas issue here. The IRC determines what is alimony
for federal tax purposes.
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