The IRS limits each spouse to claim only the interest on $500,000 of mortgage debt.

Can you claim interest on a mortgage not in your name?

The short answer is no. You must pay the mortgage and be an owner of the property. There is a doctrine called constructive ownership where someone who does not own in name, can be treated as an owner. You would have to take the deduction, get audited, and then go to tax court and argue your case.

Can a married couple claim the mortgage interest deduction?

If you’re married and file a joint tax return, your qualified home(s) can be owned jointly or by one spouse only. If you’re married and file separate returns, you can each claim the mortgage interest for one qualified home only—unless you consent in writing that one spouse can claim the deduction for both homes.

Who is eligible for the mortgage interest deduction?

But not every homeowner is eligible to take the mortgage interest tax deduction. My first response to Alice’s question is to make sure that she and her husband are eligible to claim it. Here are the two major hurdles you have to jump over in order to take advantage of the mortgage interest deduction:

Do you split the mortgage interest deduction with your ex?

Alternatively, if your soon-to-be ex makes the payments, he gets the deduction. But, if you live in a community property state, you split the mortgage interest deduction regardless of who paid the costs — just like you split all of your other income and deductions.

Can a daughter in law deduct interest on a mortgage?

The answer is that even if you’re indebted for a mortgage, you can only deduct interest for the payments you actually made. If the daughter-in-law and son made all the mortgage payments, they are the only ones entitled to the deduction, and they can take it in any year that they itemize.