Mom passed, left me house & mortgage.

[justalayman]

Are you saying I have to go out and aquire a mortgage myself, and pay the estate's mortgage off with mine?
.

I believe so. Either that or if the mortgage is assumable, the estate transfers the mortgage as the rules allow.

hopefully one of the folks that deal with banking will step in and confirm or deny but yes, I believe while they cannot call the current mortgage due, they have no obligation to transfer it to an unproven person.

 

[seniorjudge]

The bank may NOT want you to refinance due to the higher interest rate that is on the mortgage.

 

[DDDDDD]

OK, spent a good part of the day on phone with IRS.

Here's the skinny... I can only deduct mortgage interest that I am legally obligated to pay. So, since I'm not legally obligated to pay the mortgage that's still in my mother's name, it's not deductable. (Even though, if I didn't the bank would foreclose and take the house.)

As far as property taxes, It's pretty much the same story. Until the property was legally mine, can't claim it either.

 

[FlyingRon]

Huh? You just said the property IS in your name. (Having been deeded to the estate and then to you alone). That's all you need. First off, the mortgage has nothing to do with property taxes. You are obligated because you are the owner, you pay them, you deduct them. It matters not if the bank is escrowing the money for that or not.

 

[DDDDDD]

Yes Ron, the property was deeded to me. My lawyer handled that through the county. But it's only been in my name for about 7 months, therefore I cannot claim the property taxes from 2009, 2008, and 2007. Despite the fact that I paid them.

Mortgage is another similar story. I called the bank today and asked why the loan still says "Estate of" (my mom) and "In C/O" (Me.) They're now telling me they got the letters testemery and the death certificate, but have not received the info they need from the County.

 

[xylene]

Are you saying I have to go out and acquire a mortgage myself, and pay the estate's mortgage off with mine?

You may have to do that.

BUT

That may totally be in your favor, given the super low rates and excellent terms available.

Besides, keeping it in your mom's estate name also favors you... although it would not prevent foreclosure, it would protect your personal credit if you say decide to bail out..

You can deduct the interest.

You will need a CPA's help, but as a home owner with an inherited home you should be working with one, at least this year.

 

[xylene]

OK, spent a good part of the day on phone with IRS.

You also realize that the IRS is not a tax adviser.

I'm just saying.

They have no obligation to make sure that you get tax deductions you are entitled to.

 

[DDDDDD]

You may have to do that.

BUT

That may totally be in your favor, given the super low rates and excellent terms available.

Besides, keeping it in your mom's estate name also favors you... although it would not prevent foreclosure, it would protect your personal credit if you say decide to bail out..

You can deduct the interest.

You will need a CPA's help, but as a home owner with an inherited home you should be working with one, at least this year.

Well.., the home was refinanced at 5.24% with a 15 year note in March 2001. Only 67 months (5 years, 7 months) left. Since the note is nearing the end of the term, the interest paid is rapidly diminishing.

But property taxes... this is Long Island and I really need this deduction while carrying this expense. I was counting on it.

 

[DDDDDD]

You also realize that the IRS is not a tax adviser.

I'm just saying.

They have no obligation to make sure that you get tax deductions you are entitled to.

This is true, however, I went over the particulars with their tax law help department. Their advise mimicked what I got here... since I was not legally obligated to pay this mortgage, or the property taxes (until the property legally became mine) I cannot deduct them.

 

[tranquility]

My mom passed in 2007, willed me the house. I am also the executor. The house has a mortgage. The County and the Township already have me listed as the owner. I contacted the bank holding the mortgage to inform them I was the new owner.

and,

how do I claim the mortgage interest I'm paying when I file my taxes? I mean, the mortgage company is probably reporting under my dead mother's SS#. In the meantime, I'm the one paying it.

and then,

How do I deduct it? [the mortgage] It's not in my name!

and then, I wrote:

While it is true that one can only deduct the home mortgage interest if you are responsible to pay it, since you own the house and would lose it, case law would say you *are* responsible to pay it.

Which is the answer. You should see a tax professional for advice who will explain it to you as after you wrote all the above, you wrote:

The estate already deeded it to me.

and,

OK, spent a good part of the day on phone with IRS.

Who are not tax advisers. However, they did give the correct law:

I can only deduct mortgage interest that I am legally obligated to pay.

However, you or they did not interpret the law correctly:

So, since I'm not legally obligated to pay the mortgage that's still in my mother's name, it's not deductable. (Even though, if I didn't the bank would foreclose and take the house.)

Sorry, no cigar. While it could be true under certain facts, it may also not be true under what I understand to be the facts here. See a tax professional who will look at your particular situation. However, you *then* write:

As far as property taxes, It's pretty much the same story. Until the property was legally mine, can't claim it either.

and:

Yes Ron, the property was deeded to me. My lawyer handled that through the county. But it's only been in my name for about 7 months, therefore I cannot claim the property taxes from 2009, 2008, and 2007. Despite the fact that I paid them.

Mortgage is another similar story.

Both of which combined with the previous facts makes you to be a confused person who needs to see someone as you don't have the ability to state the problem or the facts or your needs clearly. Property taxes are different from the mortgage. When and how things were paid and who was responsible for them are important. Owning a thing is different from not owning that thing and the fact is important.

 

[DDDDDD]

OK Tranquility, thank you for all the time you've spent with me on this.