On Apr 30, 11:16*am, "removeps-gro...[at]yahoo.com" <removeps-
gro...[at]yahoo.com> wrote:
- quote -

Yes.

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On Apr 30, 5:19 am, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:

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To both questions?

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<removeps-groups[at]yahoo.com> wrote
- quote -




Yes.




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Paul Thomas, CPA
Watkinsville, Georgia

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

If the house is jointly owned after divorce and each former spouse (A
and B) makes half of the mortgage interest and property tax payments,
but only one of them (A) lives in the house, can they both deduct the
mortgage interest and property tax that they pay on their own tax
returns? The rule with mortgage interest is that you can only deduct
mortgage interest on your primary or second home, but the home is not
really the primary or second home of the former spouse who no longer
lives there (B), so I'm confused with whether the payments are
deductible. Publication 504 suggests that it is, because when B makes
all the payments, half of the mortgage interest is deductible on their
return, and the the other half is alimony.

And what about the section 121 exclusion? The former spouse B who
moves out may lose out on the exclusion if the house is sold after
more than 3 years. However, IRC 121(d)(3)(B) suggests that the former
spouse who moves out (B) but still jointly owns the home may get the
section 121 exclusion anyway because A lives there. Is my reading
right?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >