In Deducting Mortgage Interest When Your Name Is Not on the Deed, you learned how such a mortgage interest deduction is possible.

Do the same rules apply to claiming the $250,000 home-sale exclusion?

Pretty much—but not exactly, as we explain.

Big Difference

Mortgage interest. IRS Reg. Section 1.163-1(b)1 states:

Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by ... Log in to view full article.