Subj To Write Off

[M S]

I am starting my first subj to deal and its going to be for my own residence. Since the mortgage is still under the other persons name, how am I entitled or am I even entitled to the interest tax write off my taxes next year?

[Nick J.]

yes..........IRS form 1098
you will be entitled to deduct interest paid.

Make sure your Sub2 addendum states this as well, I've copied and pasted the exact verbiage I use on my Sub2 contracts:

Interest Deduction. Seller hereby agrees that after Closing, Buyer shall be entitled to take the interest deduction on Buyer’s income tax return for any and all interest paid related to any and all above mentioned mortgages and mortgage payments regardless of EIN or SSN on any future form 1098 or any other future statement of interest paid. And Seller further agrees that Seller shall not take the interest deduction on his/her tax or any entity’s tax return for any interest paid related to any and all above mentioned mortgages and mortgage payments. Seller does hereby agree to instruct any and all lenders related to this transaction to send any future statements and or information to the Seller in care of the Buyer at the Buyer’s address. Seller does hereby agree to continue to work with Buyer in obtaining any future interest statements, payment statements, mortgage statements, or any other information required by Buyer to maintain Buyer’s records. This paragraph and agreement shall survive Closing and continue until Buyer resells the property or until all existing indebtedness is satisfied.