Tax Court: Taxpayer Who Is Equitable of the Property Entitled to Mortgage Interest Deduction Regardless of Formal Title

Tax Court held that a taxpayer could claim mortgage interest deduction even though the taxpayer was not added to the legal title of the property in that taxable year when he could prove that his family, the owner in title, granted him an interest in the property. The court confirmed its previous stance that a taxpayer could be an equitable owner of the property if the taxpayer assumed the benefits or burdens of maintain the property; in this case, the taxpayer resided in the property and assumed certain duties as property owner.

See Phan v. Commissioner, T.C. Summary Opinion 2015-1.

Posted by Jin Keol Park, Associate Editor, Wealth Strategies Journal

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