Subject-to transactions, are you writing off the mortgage interest?

[Daniel Hart]

Deed is your name, mortgage is in previous owners name, you've been paying the mortgage, do you write off the interest? My accountant says I can't...

[Steven Hamilton II]

Dan,

You are allowed to deduct the interest on any property in which you have a financial interest. That includes being listed on the deed. If the IRS questions simply show them a copy of the deed and they will not argue. Since you stand to lose if the property is foreclosed on.

The loan itself does not have to be in your name.

-Steven the Tax Guy
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