tag:blogger.com,1999:blog-19538019.post6379547487478849406..comments2009-01-30T16:57:35.174-08:00Dennis Estradahttp://www.blogger.com/profile/12282504900069893706noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19538019.post-79641591583453831972009-01-30T16:57:00.000-08:002009-01-30T16:57:00.000-08:00As I understand, your mother owns the house. And, it is fully paid. So, there is no more mortgage interest deduction. <BR/><BR/>When your mother sells the house as lease purchase, she still owns the home. The buyer could not claim the mortgage interest. Unless the buyer decided to purchase the house, the buyer can not claim the mortgage interest. The buyer is just leasing until he finally purchase the house for real.Dennisnoreply@blogger.comtag:blogger.com,1999:blog-19538019.post-48431034839759470452009-01-07T07:21:00.000-08:002009-01-07T07:21:00.000-08:00Ok, third try on this question... Please help... My mother has a house in Texas she is selling as a lease/purchase. The house has been paid off for quite sometime now and she is essentially playing the bank with a 5% interest and 150.00 credit each month to the principle of the house at closing. This is the end of the first year and the buyers are requesting a mortgage interest statement. Is this allowed? Is it a negative option for my mother? How does the IRS view this? Thank you... Mattb52radarhttp://www.blogger.com/profile/10589396483518732095noreply@blogger.com