Hello and welcome to Moneygirls quick and dirty tips for a richer life.

Today's topic, who gets to take the mortgage interest deduction? Amy from Minnesota

called in with this question.

Hi, Money Girl, I have a complex question that I think is becoming relevant considering that more and more

couples today they're finding are not marrying and choosing to buy a house and cohabitate

without being married.

We purchased the house and the loan had to go under my name because of my credit, but I was adamant at the time that they also put my partner's name on the title because he, it's worthwhile for him to claim any interest, whereas I have almost no income income so it doesn't help me to not to claim

interest. So what I'm wondering is how do we go about or can we even go about getting him able to claim the interest reduction when his name is, it appears is only on the title and not on the loan paperwork the mortgage paperwork.

Thanks for that great question Amy the topic is a really interesting one.

Okay so who does get to take the mortgage interest deduction? Is it the borrowers on the loan? Is it the owners on title? Is it the person or persons actually making the mortgage payments? Who gets it?

In publication 936, the IRS the legally liable for the loan. The IRS also says that you cannot deduct payments

you make for someone else if you are not legally liable to make them. In addition,

the IRS states that there must be a true debtor-creditor relationship between you and the lender.

So according to the IRS, it sounds as if you'd actually need to be on the loan to deduct

the mortgage interest.

But is that really the case?

Let's see if Legal Ladd can help shed some light on this topic.

Legal Ladd here.

It is not required in every case for you to have a true debtor-creditor relationship with

your lender to take the mortgage interest deduction. Title 26, Code of Federal Regulations

Section 1.163-1b provides, quote,

interest paid by the taxpayer on a mortgage upon real estate of which he is the

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