Unmarried couple bought house - should we split mortgage deduction?

[leighangela]

Hello,

My boyfriend and I are both on the house deed and mortgage. I pay the actual mortgage bill out of my checking account, but he sends me monthly payments to cover his share.

Last year I grossed $24,000 and he grossed $18,000.

We are both self-employed, him fully (he had no federal income tax last year, only self employment tax, not sure why). I have 3 small businesses (sole prop, one of those being LLC) and I'm also employed by a business. So I pay federal income tax and self employment tax.

I probably have more costs to itemize than him, but he probably has more mileage.

I'm guessing we might benefit more from one of us (me?) taking the whole mortgage interest deduction and compensating him myself rather than splitting 50/50. Would love input, thanks!

Oh on a side note we also have the Mortgage Credit Certificate (MCC) and last year I was able to use it but he was not, since he had no federal income tax to pay. I don't think I can claim the whole credit, I think I can only claim 50% of it, anyone know for sure?

 

[dannygenio]

The gross is too small. Taking a standard deduction will save you time!

 

[leighangela]

What?? If we take the standard deduction then we can't deduct our mortgage payments. I'm looking to save money, not time. I've spent my entire year documenting every single thing I've spent on.

 

[dannygenio]

yes you can take 50/50... but if you are paying more taxes than him, I would apply 100% to your return so you can get a larger return