Because Scott is three months delinquent on the mortgage payments for his personal residence, Jeanette (his sister) is going to cover the arrearage. Based on past experience, she does not expect to be repaid by Scott. Which of the following statements is correct?
A) If Scott receives the money from Jeanette and pays the mortgage company, Jeanette can deduct the interest part.
B) If Jeanette pays the mortgage company directly, neither Scott nor Jeanette can deduct the interest part.
C) If Jeanette pays the mortgage company directly, she cannot deduct the interest part.
D) Only b. and c. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

None of the options allow for the deduction of mortgage interest because Jeanette is not an owner of the property. Only owners of the property can deduct mortgage interest.

Because Scott Is Three Months Delinquent on the Mortgage Payments