mortgage deduction question

My brother and I purchased a property 3 years ago. Now that rates have been going down the past month, we’re thinking of refinancing to a 30 year fixed.

The problem is this, I’ve been paying the mortgage for the past 2 years, but recently screwed up my credit. He has offered to do the refi so the loan would in his name only because my credit would jack up the rate, but would put me in the title.

Since I’ve been paying the loan, and been taking the deduction the past two years, can I still take the deduction after the refi when the loan is in his name only?

Thanks in advance!

whoever owns the house is entitled to the deduction. what you are describing is a “handshake” partnership. ideally you would file a partnership return on the house, and split the deductions/income/etc however the two of you have decided.

let me just be clear, so it is permissible if I take 100% of the deduction if my name is on the title, even though my name is not on the loan…correct?


as long as you’re not both deducting it, I’d have no problem signing that return.

Just to add my two cents, yes, that is correct.

So for example, lets say my brother owns a property, every aspect of it…
but I make the all the payments (mortgage)…

I get to deduct the mortgage interest.

If the payments were 50-50, the deductions get split 50-50.

You just both need to agree on who is deducting what portion (no overlap)

Just to add a little extra to the discussion. Whoever owns the house AND makes the payments is entitled to the deductions. If you owned the house but your brother made the payments, then you would not be entitled to the deduction.