January 7th, 2009
can you elaborate?It also needs to be your primary residence...i.e. you can't own 200 properties and deduct the interest on all of them.Yes. It is fully deductible as long as the funds are used to buy or build your Principal or second home.
You must itemize on your tax return in order to get the deduction. If you just recently purchased a home, there is the possibility that you will not exceed the standard deduction threshold and therefore will not be able to deduct the mortgage in the first year.
There are other tax benefits to home ownership as well. Property taxes are also deductible.
See a tax preparer if you are not sure how to file your return.Yes, as long as it is a high enough percentage of your income to qualify.Yes, it is tax deductible. In order for you to take advantage of that, however, you will need to itemize your taxes instead of taking the standard deduction. If, of course, by itemizing you come up with a lower deduction than the standard, you're still better off with the standard. Most of the time, mortgage interest alone is not enough to make itemizing worthwhile.
For the record, mortgage insurance (if you still have < 20% equity against the purchase price of the home) is also tax deductible.
Yes, if it's your primary or second home, and IF you itemize. You choose between intemizing and taking a standard deduction, whichever is higher, but not both.Generally when you own a home you no longer take the standard deduction, but itemize. You get to deduct the mortgage interest paid, the PMI and the real estate taxes from your income. There are many other deductions, including charitable contribution (with proof) and nonreimbursed employee business expenses. Go to www.irs.gov and look at Schedule A, read the Sch.A instructions.#If you have any other info about this subject , Please add it free.# |
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