We often have borrowers who are just co-signing or going on title, but they have no intention of making payments. These same borrowers also often want to “take the tax deduction for interest and property taxes.”

    The IRS, however, usually does not allow borrowers to take the deduction for interest and property taxes unless the borrowers are actually making the interest and property tax payments. If someone else is making the payments, the borrowers cannot take the tax deductions.

    Conversely, if a person is NOT on the loan but is on title and making payments, that person can take the tax deductions. Again, whoever is making the payments usually can take the deductions.

    Jay Voorhees
    Founder/Broker | JVM Lending
    (855) 855-4491 | DRE# 01524255, NMLS# 335646

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