Posted by Len on August 24, 2009 at 01:37:20:
In regards to your question, IRS Regulation 1.163-1(b) says:
“Interest paid by the taxpayer on a mortgage upon real estate of
which he is the legal or equitable owner, even though the taxpayer is
not directly liable upon the bond or note secured by such mortgage, may
be deducted as interest on his indebtedness…”
If you can establish that you are the “legal or equitable owner” of the property, then you are entitled to the deduction.
Same thing for taxes. If there is not a legal obligation on your part attributable to a legal or equitable interest in the property for which the payments are being made, there would be no deduction.
However, I would advise you to contact your attorney and/or accountant to have him/her go over the situation in more detail because there may be something missing in the details that can make a difference.
Good luck!