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Tax Deduction Consulting: Mortgage Interest Buckhannon WV

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.

Harold D. Vealey (RFC®), CLU, LUTCF
(304) 346-2154
910 Chester Road
Charleston, WV
Company
Vealey Financial Services
Qualifications
Education: BA
Years of Experience: 43
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, BuySell, Compensation Plans

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Tax Tech
(304) 296-1040
990 Fairmont Rd Ste C
Morgantown, WV

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H&R Block Inside Sears At Towne Center Mall
(304) 345-1373
200 QUARRIER ST
CHARLESTON, WV

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Liberty Tax Service
(866) 871-1040
411 W King St
Martinsburg, WV

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H&R Block Inside Food Lion Shopping Center
(304) 683-3017
834 ROBERT C BYRD DR
CRAB ORCHARD, WV

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Mr. Gregory R. Metcalf (RFC®), RFP
(307) 723-5018
200 Ivy St
Weirton, WV
Company
Horizon Financial Group
Qualifications
Education: Ohio University, BBA FinanceCollege for Financial Planning's CFP Certification Professional Education Program
Years of Experience: 15
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection

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Liberty Tax Service
(866) 871-1040
3559 Robert C Byrd Dr
Beckley, WV

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H&R Block
(304) 733-9171
4341 Us Route 60
Huntington, WV

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H&R Block
(304) 927-4481
413 MAIN ST
SPENCER, WV

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SullivanWebb, pllc Certified Public Accountants
(304) 697-0565
422 Kinetic Drive Suite C
Huntington, WV
 
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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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