Home Mortgage Interest Deduction Answers
Can I split the deduction for mortgage interest with my sister even if form 1098 only has my ss#?
Q. My sister and I purchased a new home in 2004. The form 1098 has both of our names as payer/borrower with only my ss#. We've been splitting the mortgage interest deduction, but this year after my sister already filed her 2006 return, someone mentioned to me that I should be the only one to claim deduction for the mortgage interest. I need to file my tax by 10/15/07 and was wondering if anyone can help me out on what to do! p.s. I didn't have enough income to pay mortgage last yr, so my sister paid mostly...
Asked by Qtip07 - Mon Oct 8 18:25:19 2007 - - 4 Answers - Comments
A. Interest should be deducted by the person who pays it. See IRS Publication 936 for more details. It says, in part, More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print a See attacheda next to the line. Similarly, if you are the payer of record on a mortgage on which… [cont.]
Answered by kearneyconsulting - Mon Oct 8 18:34:28 2007
Q. My sister and I purchased a new home in 2004. The form 1098 has both of our names as payer/borrower with only my ss#. We've been splitting the mortgage interest deduction, but this year after my sister already filed her 2006 return, someone mentioned to me that I should be the only one to claim deduction for the mortgage interest. I need to file my tax by 10/15/07 and was wondering if anyone can help me out on what to do! p.s. I didn't have enough income to pay mortgage last yr, so my sister paid mostly...
Asked by Qtip07 - Mon Oct 8 18:25:19 2007 - - 4 Answers - Comments
A. Interest should be deducted by the person who pays it. See IRS Publication 936 for more details. It says, in part, More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print a See attacheda next to the line. Similarly, if you are the payer of record on a mortgage on which… [cont.]
Answered by kearneyconsulting - Mon Oct 8 18:34:28 2007
mortgage interest deduction on room rental?
Q. I have an area of my house that I rent out. I know I have to declare that income and can also deduct some expenses - like mortgage interest on Schedule 1040E. My question is since it is my main home, how do i determine what interest is for the rental part vs whole house? Isn't the interest naturally deducted anyway since it is my house? Also, should I use % of sq ft or % of rooms? Is one better than the other?
Asked by Kevin G - Wed Feb 20 13:35:23 2008 - - 2 Answers - Comments
A. I don't think the method of allocation you use is significant as long as you use the same method consistently year after year. As you noted, the interest and property tax issues are moot, assuming you itemize on Schedule as they're deductible anyway.
Answered by botygy - Wed Feb 20 13:47:44 2008
Q. I have an area of my house that I rent out. I know I have to declare that income and can also deduct some expenses - like mortgage interest on Schedule 1040E. My question is since it is my main home, how do i determine what interest is for the rental part vs whole house? Isn't the interest naturally deducted anyway since it is my house? Also, should I use % of sq ft or % of rooms? Is one better than the other?
Asked by Kevin G - Wed Feb 20 13:35:23 2008 - - 2 Answers - Comments
A. I don't think the method of allocation you use is significant as long as you use the same method consistently year after year. As you noted, the interest and property tax issues are moot, assuming you itemize on Schedule as they're deductible anyway.
Answered by botygy - Wed Feb 20 13:47:44 2008
How much does mortgage interest deduction increase your refund?
Q. This is my first year to be eligible to claim mortgage interest, bought my home in April, 2010. My regular refund previously filing 1040EZ was about $1000. Completing my return last night online the refund amount went up to $1249 - not exactly the large increase I was hoping for. Should l hire a professional?
Asked by Randy Still - Thu Jan 20 10:22:27 2011 - - 3 Answers - Comments
Q. This is my first year to be eligible to claim mortgage interest, bought my home in April, 2010. My regular refund previously filing 1040EZ was about $1000. Completing my return last night online the refund amount went up to $1249 - not exactly the large increase I was hoping for. Should l hire a professional?
Asked by Randy Still - Thu Jan 20 10:22:27 2011 - - 3 Answers - Comments
Can you claim a mortgage interest deduction AS WELL AS a phantom loss on your home?
Q. I am considering purchasing a home, however, I will only be there for 2 to 3 years. If I buy this home, I would like to rent it out once I leave the area. At current market conditions, I would be about $400 shy per month between rental and mortgage plus expenses. I am curious if you can claim both mortgage interest paid as well as the phantom loss on the rental on my income tax return. This would be my only home and my total family income is just under 150k/year.
Asked by taxignorant - Sun Apr 22 01:39:19 2007 - - 5 Answers - Comments
A. Yes, but if I understand you correctly, you will be getting 400 dollars less than the mortgage payment per month. Basically on paper putting you in the hole for 400. This is ok, but the IRS may question you on why you have not rented it for more. This would also make a nice deduction for you, as you can take depreciation on this house as well. And depending on the cost of the house, that could be a huge deduction at tax time as well. One thing to note though, when you take depreciation on property, you may have to pay it back when you go to sell the property. Always best to talk to a Tax Consultant or do your own research and look up Rental Depreciation on Google to see how other people handle this as well. In Renting property.. You… [cont.]
Answered by rfrstormer - Sun Apr 22 01:59:35 2007
Q. I am considering purchasing a home, however, I will only be there for 2 to 3 years. If I buy this home, I would like to rent it out once I leave the area. At current market conditions, I would be about $400 shy per month between rental and mortgage plus expenses. I am curious if you can claim both mortgage interest paid as well as the phantom loss on the rental on my income tax return. This would be my only home and my total family income is just under 150k/year.
Asked by taxignorant - Sun Apr 22 01:39:19 2007 - - 5 Answers - Comments
A. Yes, but if I understand you correctly, you will be getting 400 dollars less than the mortgage payment per month. Basically on paper putting you in the hole for 400. This is ok, but the IRS may question you on why you have not rented it for more. This would also make a nice deduction for you, as you can take depreciation on this house as well. And depending on the cost of the house, that could be a huge deduction at tax time as well. One thing to note though, when you take depreciation on property, you may have to pay it back when you go to sell the property. Always best to talk to a Tax Consultant or do your own research and look up Rental Depreciation on Google to see how other people handle this as well. In Renting property.. You… [cont.]
Answered by rfrstormer - Sun Apr 22 01:59:35 2007
Can I take a mortgage interest deduction on a house that has been for sale for two years and have not lived in?
Q. This was my family's main residence in Michigan for a year and a half. I was transfered to Florida and we put the house up for sale. We moved to a rental house in Florida two years ago, waiting for the house in Michigan to sell. The house sold in January, 2010. Can I take a home mortgage interest deduction for 2009 on this house?
Asked by skyes_power - Sun Apr 11 14:01:11 2010 - - 6 Answers - Comments
A. You can take mortgage interest for your primary home or second home. The law is very vague on defining a second home, so yes you can call that your second home and take the deductions.
Answered by Judy - Sun Apr 11 15:47:43 2010
Q. This was my family's main residence in Michigan for a year and a half. I was transfered to Florida and we put the house up for sale. We moved to a rental house in Florida two years ago, waiting for the house in Michigan to sell. The house sold in January, 2010. Can I take a home mortgage interest deduction for 2009 on this house?
Asked by skyes_power - Sun Apr 11 14:01:11 2010 - - 6 Answers - Comments
A. You can take mortgage interest for your primary home or second home. The law is very vague on defining a second home, so yes you can call that your second home and take the deductions.
Answered by Judy - Sun Apr 11 15:47:43 2010
If you own a home and mortgage jointly, who can take the tax deduction for interest and taxes?
Q. I'm speaking in terms of if we were to file separate tax returns.. married filing separately.. would we split the amount we paid in half?
Asked by unhappy - Thu Apr 10 05:41:51 2008 - - 1 Answers - Comments
A. Yes, you can split the deductions. Since only one name and SSN appears on the 1098 you receive from the lender, see the instructions for Schedule A for the additional documentation needed.
Answered by Bostonian In MO - Thu Apr 10 05:56:25 2008
Q. I'm speaking in terms of if we were to file separate tax returns.. married filing separately.. would we split the amount we paid in half?
Asked by unhappy - Thu Apr 10 05:41:51 2008 - - 1 Answers - Comments
A. Yes, you can split the deductions. Since only one name and SSN appears on the 1098 you receive from the lender, see the instructions for Schedule A for the additional documentation needed.
Answered by Bostonian In MO - Thu Apr 10 05:56:25 2008
AMT and Mortgage Interest Deduction?
Q. Does the AMT reduce your ability to claim the Mortgage Interest Deduction for a second home? If so, at what income level does it start, and how does it increase as income level increases? Any information and web links leading to useful AMT and mortgage calculators are greatly appreciated.
Asked by livvymom - Sat Nov 29 13:08:49 2008 - - 1 Answers - Comments
Q. Does the AMT reduce your ability to claim the Mortgage Interest Deduction for a second home? If so, at what income level does it start, and how does it increase as income level increases? Any information and web links leading to useful AMT and mortgage calculators are greatly appreciated.
Asked by livvymom - Sat Nov 29 13:08:49 2008 - - 1 Answers - Comments
Who can claim a deduction on the mortgage interest paid?
Q. I own a home, and the mortgage is under my name too; however, my brother's family lives in it and they make the mortgage payments. Can they deduct the interest paid on their tax return? or Do i deduct in on my tax return?
Asked by dooli89 - Mon Jan 26 18:36:50 2009 - - 3 Answers - Comments
A. Yes they can deduct the interest paid on their return. They just have to include a statement that states the information of the person who received the form (which is you).
Answered by Tara H - Mon Jan 26 18:45:22 2009
Q. I own a home, and the mortgage is under my name too; however, my brother's family lives in it and they make the mortgage payments. Can they deduct the interest paid on their tax return? or Do i deduct in on my tax return?
Asked by dooli89 - Mon Jan 26 18:36:50 2009 - - 3 Answers - Comments
A. Yes they can deduct the interest paid on their return. They just have to include a statement that states the information of the person who received the form (which is you).
Answered by Tara H - Mon Jan 26 18:45:22 2009
How to home interest deduction is calculated for Taxes?
Q. How can I figure out the amount of extra return I will get from my home interest deduction. As an easy example say before taking that deduction I was getting a refund of $1,000 and I have $8000 in mortgage interest. What amount of additional tax refund could I expect?
Asked by George - Tue Dec 7 17:35:37 2010 - - 5 Answers - Comments
A. It depends on your marginal tax rate. Look at the tax rate schedules in the form instructions or IRS publications. The 2010 schedules will be very close to 2009. Whatever marginal tax rate you're in will determine how much you'll save for every extra dollar of deduction. Don't forget to add in the state percentage. A little quirk you have to do to figure it out is subtract last year's standard deduction, which you won't get this year because you're itemizing. You also get to deduct state withholding, property tax, and charitable contribuitons, among other things. It's not just mortgage interest. For example. 2009 - single taxpayer - standard deduction $5,700 Gross income $60,000 Exemption -$3,650 Standard deduction -$5,700 … [cont.]
Answered by mrreliable3599 - Tue Dec 7 17:47:40 2010
Q. How can I figure out the amount of extra return I will get from my home interest deduction. As an easy example say before taking that deduction I was getting a refund of $1,000 and I have $8000 in mortgage interest. What amount of additional tax refund could I expect?
Asked by George - Tue Dec 7 17:35:37 2010 - - 5 Answers - Comments
A. It depends on your marginal tax rate. Look at the tax rate schedules in the form instructions or IRS publications. The 2010 schedules will be very close to 2009. Whatever marginal tax rate you're in will determine how much you'll save for every extra dollar of deduction. Don't forget to add in the state percentage. A little quirk you have to do to figure it out is subtract last year's standard deduction, which you won't get this year because you're itemizing. You also get to deduct state withholding, property tax, and charitable contribuitons, among other things. It's not just mortgage interest. For example. 2009 - single taxpayer - standard deduction $5,700 Gross income $60,000 Exemption -$3,650 Standard deduction -$5,700 … [cont.]
Answered by mrreliable3599 - Tue Dec 7 17:47:40 2010
Dollar amount of mortgage interest deduction?
Q. I know my home mortgage interest is 100% tax deductible, but I want to know how that deduction is translated into dollars. Since I am in the 15% tax bracket, am I getting $15 off my income tax for every $100 I pay in mortgage interest? Or is the actual deduction calculated in a different way?
Asked by Pondering Pig - Wed Mar 18 15:37:48 2009 - - 4 Answers - Comments
A. At most you'd get $15 off your tax for each $100 of mortgage interest paid. Since if you didn't itemize you'd get a standard deduction, the actual effect is very likely less than that. You could figure your taxes both ways and see what the real savings is. For example, I just finished a return for a couple in the 15% bracket whose itemized deductions totaled $11,993. Since this year a couple can deduct $1000 of real estate tax along with a standard deduction, their actual savings from itemizing was around $14 even though they paid almost $7000 in mortgage interest.
Answered by Judy - Wed Mar 18 16:31:17 2009
Q. I know my home mortgage interest is 100% tax deductible, but I want to know how that deduction is translated into dollars. Since I am in the 15% tax bracket, am I getting $15 off my income tax for every $100 I pay in mortgage interest? Or is the actual deduction calculated in a different way?
Asked by Pondering Pig - Wed Mar 18 15:37:48 2009 - - 4 Answers - Comments
A. At most you'd get $15 off your tax for each $100 of mortgage interest paid. Since if you didn't itemize you'd get a standard deduction, the actual effect is very likely less than that. You could figure your taxes both ways and see what the real savings is. For example, I just finished a return for a couple in the 15% bracket whose itemized deductions totaled $11,993. Since this year a couple can deduct $1000 of real estate tax along with a standard deduction, their actual savings from itemizing was around $14 even though they paid almost $7000 in mortgage interest.
Answered by Judy - Wed Mar 18 16:31:17 2009
How is the tax break provided on home interest payment? Is it at tax-file time or at tax-witholding time?
Q. I know that home mortgage interest payments are tax-deductible. What I dont know is when I take off the tax-deduction - is that something that can be done ONLY when I file my taxes at the end of the year?
Asked by oscar - Mon Feb 26 15:00:34 2007 - - 4 Answers - Comments
A. Yes it must be claimed as an Itemized deduction on the Schedule A when you file your return, If you do not Itemized you can not claim the Mortgage Interest Publication 936
Answered by Rob - Mon Feb 26 15:06:13 2007
Q. I know that home mortgage interest payments are tax-deductible. What I dont know is when I take off the tax-deduction - is that something that can be done ONLY when I file my taxes at the end of the year?
Asked by oscar - Mon Feb 26 15:00:34 2007 - - 4 Answers - Comments
A. Yes it must be claimed as an Itemized deduction on the Schedule A when you file your return, If you do not Itemized you can not claim the Mortgage Interest Publication 936
Answered by Rob - Mon Feb 26 15:06:13 2007
First Time Home Buyer Credit as well as Mortgage Interest, Points and Property Tax Deduction?
Q. I have bought a home (first time home buyer) in 2010 with my brother who is also a first time home buyer. We closed on May 11th so we are eligible for Tax Credit. My question is that both of us get the full 8K credit or its split between us. If It's split is there any guidelines for split? Same question applies to Mortgage Interest + Points and Property Tax Do both of us get the tax deduction for these or these items are split as well? any guidelines for that as well?
Asked by Jiggy - Tue Feb 1 00:07:14 2011 - - 2 Answers - Comments
A. The total of the credit for the house is $8K. You can split it any reasonable way--usually it's based on who contributed what for the down payment. As for itemized deductions, you claim the part you paid *and* owed. Again, typically 50-50. Chances are neither one of you will itemize.
Answered by the tax lady - Tue Feb 1 02:42:31 2011
Q. I have bought a home (first time home buyer) in 2010 with my brother who is also a first time home buyer. We closed on May 11th so we are eligible for Tax Credit. My question is that both of us get the full 8K credit or its split between us. If It's split is there any guidelines for split? Same question applies to Mortgage Interest + Points and Property Tax Do both of us get the tax deduction for these or these items are split as well? any guidelines for that as well?
Asked by Jiggy - Tue Feb 1 00:07:14 2011 - - 2 Answers - Comments
A. The total of the credit for the house is $8K. You can split it any reasonable way--usually it's based on who contributed what for the down payment. As for itemized deductions, you claim the part you paid *and* owed. Again, typically 50-50. Chances are neither one of you will itemize.
Answered by the tax lady - Tue Feb 1 02:42:31 2011
Home mortgage interest/property tax deductions?
Q. My mother is on the mortgage loan and im not, but i pay the mortgage and property tax and i have proof. Can i claim it when i file? the title of the house is under my name too. i was told by a CPA that as long as i show proof and that the house is under my name as well. i should be fine.
Asked by Chris L - Thu Mar 19 15:02:50 2009 - - 7 Answers - Comments
A. Only the party legally required to pay the mortgage loan (your mother) can claim the tax deduction for it. She will get a Form 1098 from the lender. Only the party legally required to pay the property taxes (on the title) can claim the deduction for that. Doesn't matter who actually does the paying.
Answered by jlf - Thu Mar 19 15:07:25 2009
Q. My mother is on the mortgage loan and im not, but i pay the mortgage and property tax and i have proof. Can i claim it when i file? the title of the house is under my name too. i was told by a CPA that as long as i show proof and that the house is under my name as well. i should be fine.
Asked by Chris L - Thu Mar 19 15:02:50 2009 - - 7 Answers - Comments
A. Only the party legally required to pay the mortgage loan (your mother) can claim the tax deduction for it. She will get a Form 1098 from the lender. Only the party legally required to pay the property taxes (on the title) can claim the deduction for that. Doesn't matter who actually does the paying.
Answered by jlf - Thu Mar 19 15:07:25 2009
Mortgage interest deduction tax question?
Q. I purchased my first home in Utah a little over 4 years ago. In December 2007 I bought another home. Now I'm renting out my first home, so I am I still able to claim the mortgage interest on both properties? I heard you have to put it on different areas, Schedule A for primary and Schedule E for the rental? Can someone please give me more details on this. Thanks, I'll need it for my taxes! :P
Asked by crazy_in_tangles - Sat Jan 26 20:14:10 2008 - - 4 Answers - Comments
A. Your question really is, would you put the interest for your first home (Utah 4yrs ago) on Schedule A or Sched E.. We know that the second home which you are using as your primary residence will be deducted on Sched A... The IRS states the following: ... "Second home rented out. If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. If you do not use the home long enough, it is considered rental property and not a second home." Basically, if it is a qualified home by IRS definition, you… [cont.]
Answered by Jager - Sat Jan 26 20:44:20 2008
Q. I purchased my first home in Utah a little over 4 years ago. In December 2007 I bought another home. Now I'm renting out my first home, so I am I still able to claim the mortgage interest on both properties? I heard you have to put it on different areas, Schedule A for primary and Schedule E for the rental? Can someone please give me more details on this. Thanks, I'll need it for my taxes! :P
Asked by crazy_in_tangles - Sat Jan 26 20:14:10 2008 - - 4 Answers - Comments
A. Your question really is, would you put the interest for your first home (Utah 4yrs ago) on Schedule A or Sched E.. We know that the second home which you are using as your primary residence will be deducted on Sched A... The IRS states the following: ... "Second home rented out. If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. If you do not use the home long enough, it is considered rental property and not a second home." Basically, if it is a qualified home by IRS definition, you… [cont.]
Answered by Jager - Sat Jan 26 20:44:20 2008
Mortgage interest deduction question.?
Q. On my 1098 form from the lender, it lists the mortgage interest in box 1 and points paid in box 2. Now, on Schedule A, Line 10, it says "Home mortgage interest and points reported to you on Form 1098.". I want to know if I will just enter the amount from box 1 on form 1098 or if I should combine the amounts from box 1 and 2 on form 1098 and enter the total on line 10 on schedule C. Thanks. On my 1098 form from the lender, it lists the mortgage interest in box 1 and points paid in box 2. Now, on Schedule A, Line 10, it says "Home mortgage interest and points reported to you on Form 1098.". I want to know if I will just enter the amount from box 1 on form 1098 or if I should combine the amounts from box 1 and 2… [cont.]
Asked by apolloheatshield - Sat Mar 22 22:13:54 2008 - - 2 Answers - Comments
A. From the IRS: The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. However, it should not show any interest that was paid for you by a government agency. As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. See the earlier discussion of Points to determine whether you can deduct points not shown on Form 1098. Deduct the home mortgage interest and points reported to you… [cont.]
Answered by notaperviemusculargent - Sun Mar 23 07:33:38 2008
Q. On my 1098 form from the lender, it lists the mortgage interest in box 1 and points paid in box 2. Now, on Schedule A, Line 10, it says "Home mortgage interest and points reported to you on Form 1098.". I want to know if I will just enter the amount from box 1 on form 1098 or if I should combine the amounts from box 1 and 2 on form 1098 and enter the total on line 10 on schedule C. Thanks. On my 1098 form from the lender, it lists the mortgage interest in box 1 and points paid in box 2. Now, on Schedule A, Line 10, it says "Home mortgage interest and points reported to you on Form 1098.". I want to know if I will just enter the amount from box 1 on form 1098 or if I should combine the amounts from box 1 and 2… [cont.]
Asked by apolloheatshield - Sat Mar 22 22:13:54 2008 - - 2 Answers - Comments
A. From the IRS: The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. However, it should not show any interest that was paid for you by a government agency. As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. See the earlier discussion of Points to determine whether you can deduct points not shown on Form 1098. Deduct the home mortgage interest and points reported to you… [cont.]
Answered by notaperviemusculargent - Sun Mar 23 07:33:38 2008
mortgage interest deduction?
Q. refinaced my home with a 30 yr mortage...my son is paying the mortgage to make improvements on a home...he is paying the mortgage and I would like to see him get the deduction...anyway to do this or must I just figure out my taxes with and without the mortgage interest and give him the money???
Asked by William F - Mon Jan 29 15:03:29 2007 - - 1 Answers - Comments
A. From my understanding if the mortgage is in your name, then the deduction will be in your name (and can't be transferred). Also keep in mind if the house is in your name, the redevelopments and future capital gains will also all be in your name. Therefore you will most likely have to calculate taxes with and without. Make sure you also check the interest charges are correct. I read an article the other days that 54% of loan statements contains errors (don't remember the URL). If you want to calculate and check your interest you can use a spreadsheet, or download one of the mortgage checker packages out there. I use one from which is good, or just do a search for "mortgage interest checker"
Answered by Matt - Thu Feb 1 18:58:09 2007
Q. refinaced my home with a 30 yr mortage...my son is paying the mortgage to make improvements on a home...he is paying the mortgage and I would like to see him get the deduction...anyway to do this or must I just figure out my taxes with and without the mortgage interest and give him the money???
Asked by William F - Mon Jan 29 15:03:29 2007 - - 1 Answers - Comments
A. From my understanding if the mortgage is in your name, then the deduction will be in your name (and can't be transferred). Also keep in mind if the house is in your name, the redevelopments and future capital gains will also all be in your name. Therefore you will most likely have to calculate taxes with and without. Make sure you also check the interest charges are correct. I read an article the other days that 54% of loan statements contains errors (don't remember the URL). If you want to calculate and check your interest you can use a spreadsheet, or download one of the mortgage checker packages out there. I use one from which is good, or just do a search for "mortgage interest checker"
Answered by Matt - Thu Feb 1 18:58:09 2007
What are the limits to mortgage interest deduction?
Q. My wife and I current do not owe a mortgage on our house (~$600K). I am considering getting a ($400K) home equity loan / mortgage. Our income would easily support the monthly payment. My questions are 1. Will the interest from the $400K loan be tax deductible or is interest on cash-out loans over $100K not eligible for deduction (I've heard)? 2. Will points on this load also be deductible? Thanks.
Asked by Jason - Tue Sep 16 07:52:28 2008 - - 1 Answers - Comments
A. it depends on what you are using the money for. if you are going on a vacation, no. if you are fixing up your house, yes.
Answered by ang l - Tue Sep 16 07:58:27 2008
Q. My wife and I current do not owe a mortgage on our house (~$600K). I am considering getting a ($400K) home equity loan / mortgage. Our income would easily support the monthly payment. My questions are 1. Will the interest from the $400K loan be tax deductible or is interest on cash-out loans over $100K not eligible for deduction (I've heard)? 2. Will points on this load also be deductible? Thanks.
Asked by Jason - Tue Sep 16 07:52:28 2008 - - 1 Answers - Comments
A. it depends on what you are using the money for. if you are going on a vacation, no. if you are fixing up your house, yes.
Answered by ang l - Tue Sep 16 07:58:27 2008
how much mortgage interest can you deduct? More than $1mm?
Q. I've heard that home mortgage interest deduction on your primary residence tops out at $1mm. Is that accurate?
Asked by Just the Facts, Ma'am - Mon May 18 19:13:38 2009 - - 1 Answers - Comments
A. If you can afford a property that expensive, why are you worrying about deductibility limits?
Answered by Zarg222 - Mon May 18 20:17:54 2009
Q. I've heard that home mortgage interest deduction on your primary residence tops out at $1mm. Is that accurate?
Asked by Just the Facts, Ma'am - Mon May 18 19:13:38 2009 - - 1 Answers - Comments
A. If you can afford a property that expensive, why are you worrying about deductibility limits?
Answered by Zarg222 - Mon May 18 20:17:54 2009
Can one have more than one "2nd home" for mortgage interest & property tax deduction?
Q. If one has several vacation properties, is he only allowed to deduct mortgage interest and property tax on his primary home and only 1 other property?
Asked by JPS0909 - Thu Oct 5 23:09:24 2006 - - 2 Answers - Comments
A. Yes unless one is a rental.
Answered by Accessd - Fri Oct 6 02:15:38 2006
Q. If one has several vacation properties, is he only allowed to deduct mortgage interest and property tax on his primary home and only 1 other property?
Asked by JPS0909 - Thu Oct 5 23:09:24 2006 - - 2 Answers - Comments
A. Yes unless one is a rental.
Answered by Accessd - Fri Oct 6 02:15:38 2006
Debt Panel and the mortgage interest deduction?
Q. They say they will take the mortgage interest deduction away for those over 500K. Do them mean homes over 500K? Or they mean the deductions over 500K? Most super wealthy people do not carry mortgages. So for those mortgage interst deductions (over 500K) I imagine this would affect very little of the population. Self thought - what kind of mortgage would you have to have in order to pay 500K a year in interest in your home loan? It must be for homes over 500K. Or do they mean for those over salaries over 500K?
Asked by Cold - Fri Nov 12 06:29:47 2010 - - 1 Answers - Comments
A. They mean mortgages over $500K. And it's all just "trial balloon" ideas.
Answered by Woof - Fri Nov 12 08:48:13 2010
Q. They say they will take the mortgage interest deduction away for those over 500K. Do them mean homes over 500K? Or they mean the deductions over 500K? Most super wealthy people do not carry mortgages. So for those mortgage interst deductions (over 500K) I imagine this would affect very little of the population. Self thought - what kind of mortgage would you have to have in order to pay 500K a year in interest in your home loan? It must be for homes over 500K. Or do they mean for those over salaries over 500K?
Asked by Cold - Fri Nov 12 06:29:47 2010 - - 1 Answers - Comments
A. They mean mortgages over $500K. And it's all just "trial balloon" ideas.
Answered by Woof - Fri Nov 12 08:48:13 2010
From Yahoo Answer Search: 'home mortgage interest deduction'
Wed Mar 2 23:46:46 2011
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businesspundit.com
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Number of comments 1 Homeowners know that mortgage interest provides a valuable tax deduction but this year the IRS has sweetened the pot for first time home buyers The First Time Homebuyer Credit provides
publicradio.org
Mon, 18 Oct 2010 21:23:53 GMT+00:00
with inheritance Marketplace Yes, the mortgage interest deduction is a nice benefit for many homeowners. It reduces the cost of debt. It's also one of the most over-hyped breaks in the ...
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