Thread by @roncaruthers

1. Would you like to know about a sneaky tax break if you own a house with someone you're not married to?

Or even someone you WERE married to?

Read on....

https://twitter.com/RyanTMartin31/status/1470819870094807042

2. The IRS lost a ruling a few years ago when two unmarried individuals BOTH tried to write off the mortgage interest for a house they jointly owned.

So, if you own a house with a partner, life or otherwise....

3. BOTH of you can deduct the mortgage interest on your taxes.

Sounds too good to be true, right?

Well, it's not.

Here's how it happened:

4. A couple named Sophy and Voss were unmarried domestic partners.

They both took the mortgage deduction.

The IRS audited them, and said they couldn't.

They took the IRS to Tax Court, and promptly lost.

5. They were still unhappy with that, so they appealed to the Ninth Circuit Court, and THAT court ruled that they COULD both take the deduction, subject to the maximum limits, which, at the time were 1 million, now are $750k.

6. So, basically, what this means is that they are NOT subject to the IRS limits for married taxpayers.

In AD 2016-02, the IRS acquiesed to the Court's decision, and agreed to apply mortgage limits to single taxpayers on a per-taxpayer basis.

7. But, the application goes beyond domestic partners.

-Any 2 or more single taxpayers can purchase a home as a residence;

-2 or more families can (married or single) can purcahse a vacation home to share;

-A married person can purchase a place with someone other than a spouse

8. And finally, a divorced couple can co-own a place with one spouse using it as a primary residence, but both can take the deduction.

As always, if you find that you've missed these deductions previously,

It's a fairly simple and straightforward process to amend your tax returns to claim this.

I'll have more tax stuff for you guys over the next few days now that I've finally (for now) caught up with my work.

Hope this answered your question, @RyanTMartin31

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