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Tax Deduction Consulting: Mortgage Interest Brigham City UT

What is my tax deduction for my mortgage interest? This is one of the most common questions asked by tax payers who itemize deductions. It has long been understood that the very nature of long term mortgages on home purchases have some excellent tax deduction benefits. One reason for this is that for the first years of a mortgage, almost the entire payment is interest.

Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

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Liberty Tax Service
(866) 871-1040
366 S 500 E
Salt Lake City, UT

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H&R Block Inside Sears Downtown
(801) 532-0610
754 S STATE ST
SALT LAKE CITY, UT

Data Provided by:
Robert Blake Accounting and Tax
(801) 763-8295
9626 Dorchester Drive
Cedar Hills, UT
 
H&R Block
(435) 884-3076
124 W MAIN ST
GRANTSVILLE, UT

Data Provided by:
Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

Data Provided by:
H&R Block
(801) 223-9766
1549 N STATE ST STE 102
OREM, UT

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H&R Block
(801) 825-5502
1917 W 1800 N STE D6
CLINTON, UT

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H&R Block
(801) 832-8932
2356 S FOOTHILL dr
SALT LAKE CITY, UT

Data Provided by:
H&R Block
(801) 255-3231
7065 S STATE ST
MIDVALE, UT

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Tax Deduction Consulting: Mortgage Interest

What is My Tax Deduction for my Mortgage Interest?

There are many benefits of home ownership over paying rent. The main ones are the building of equity and tax deductions. What is my tax deduction for my mortgage interest?

What is my tax deduction for my mortgage interest? This is one of the most common questions asked by tax payers who itemize deductions. It has long been understood that the very nature of long term mortgages on home purchases have some excellent tax deduction benefits. One reason for this is that for the first years of a mortgage, almost the entire payment is interest. Equity grows slowly at first. So, the new home buyer and mortgage payer finds virtually his entire house payment falling into the interest category.

The IRS regulations on interest deductions for home mortgages are not extremely complex as IRS regulations go and they seem to have a lot of common sense behind them. The underlying principle seems to be to separate real estate transactions that are for the purpose of providing a residence from those that are intended for investment and business reasons.

The first requirement for claiming a mortgage interest deduction is that the tax payer must be itemizing their deductions on Schedule A of Form 1040. You must also be the person legally liable for the loan. If you are paying the mortgage payment, out of the kindness of your heart, for a friend or neighbor, you can not deduct the interest. The mortgage must also be a secured debt on a qualified home. Secured debt here means that an actually legal document must be prepared and filed with the appropriate local agency. The property must secure the loan. A qualified home is simply a primary residence or a second home. If you are renting that second home, you must occupy it a certain percentage of the year. Homes that are purchased solely as rental properties are not qualified homes.

The three types of Mortgages for which you can claim interest are the Grandfathered Mortgage, The Home Acquisition Debt, and the Home Equity Loan. The Grandfathered loan is any mortgage taken out prior to October 13th, 1987. The Home Acquisition Debt is a mortgage taken after October 13th, 1987, for the purpose of buying, building, or improving a qualified home. The Home Acquisition Debt is limited to 1 million dollars, or $500,000 if married filing separately. This means you can only claim the interest on that limit, not that you can not spend more for a home. The Home Equity Loan is lim...

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