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If a Cosigner pays all of the the Home Equity Loan monthly payments does the Primary Signatory then get to claim the tax deduction on the interest paid or does the Cosignatory get such tax deduction?

Annie Barnes

in Student Loans

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Annie Barnes on October 5, 2018

You may not claim a deduction for something you didn't have to pay. If the primary signer does not pay the interest, then this person is not allowed to deduct. In order to claim non-commercial/non-investment interest deduction, the person claiming the deduction must (among other things) is legal or owner of the property. Generally, the cosignor is not a legal or owner of the property, hence the cosignor cannot claim an interest deduction.

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