Can I deduct home mortgage interest?
I have a slightly interesting situation... I purchased a condo with my mother in 2005, but she was the only one named on the loan as her credit was much better than mine at the time. I am, however, on the deed of the condo. Since that time, I have paid all costs associated with owning the home (i.e. the mortgage, the taxes, the condo fees, the maintenance etc.). She does not live with me and this is her "secondary" home.
Last year, my accountant told me my mother could sign a 1096 which would enable me to write off the home mortgage interest (so long as my mother didn't, as well). We did just that and everything was fine.
I went to a different accountant this year and he said just the opposite: that I can't claim any of the interest since I'm not on the loan, regardless of me being on the title and my mother signing a 1096.
I'm getting conflicting messages from the IRS, as they say I can write it off so long as I'm legally liable for the loan. Is being on the title sufficient to prove that I am legally liable for the property?
This is becoming a sticky situation as I have now moved and will be renting out the property. I will now have to claim the rental income and I'll inevitably be in a sticky situation if I cannot claim the mortgage to offset this new income.
Thanks in advance!