Posted by Greg (tx) on July 26, 2005 at 03:05:33:
Crystal,
Even though the mortgage and the 1098-INT forms that you get from the mortgage company at the end of the year show your seller’s name, you should have gotten them to sign a document explaining that they would no longer be able to deduct the mortgage interest any longer, effective with the closing date.
Contact your accountant or CPA to get tax law quotes. I have been investing in subject 2 properties since 1999 and have always claimed the interest deductions. If the former owner claims it, and the IRS ever does an audit then I can prove that I was the one who made the payments (via cancelled checks, etc).
Send me an email if this doesn’t clear up your concerns.
All the best,
Greg (tx)
www.leaseoptionloopholes.com