Tax Question

I am a tax professional. To answer your question, if the mortgage is in both your names, and you are not married, you have some options.

You will have to fill out your returns seperate as single individuals (no Head of Household unless there are dependent children involved). I am assuming that you both would have sufficient deductions to use Schedule A.

1. You can split the 1098 evenly and both can claim the deduction.
2. One of the owners can claim the total deduction while the other elects not to claim it at all.

If, however, the loan is in one name only, only the person who has the mortgage can claim the deduction.

The core issue here is who is listed on the mortgage. If your financee is not listed, she cannot use the 1098. Once you get married you will file as Married Filing Jointly, and the mortgage interest would be used together.