Morgage deduction question

[Hedge_87]

So I have a friend who has a house that their parents bought in her name. She pays a monthly payment to an account (direct deposit out of each paycheck). Then the bank takes the payment for the morgage out of that account when needed. She also has is set up where she sets aside the insurance and tax money in the same account. My question is can she claim the interest on the loan or not? Although I have my own shit together I remain relatively ignorant of how all the tax crap actual works.

[eman resu]

Hi - Check out IRS pub 936. 

"How" the payments are made and if taxes/insurances are escrowed is irrelevant.  It's about who has ownership, who's obligated to pay, and who actually paid. 

[Cheddar Stacker]

Yes. She should get a form 1098 in the mail. If she doesn't have it yet tell her to check with her parents or the bank.

[Hedge_87]

Ok thanks I'll tell her that today. I guess since I give her a little financial advice every now and then she thought I was some financial guru. The truth is all I know is to hide as much income in to retirement accounts as possible and stay out of debt lol.

[soccerluvof4]

^+1....And thats a good thing!