Business Tax Recovery Logo


Tax Deduction Consulting: Mortgage Interest Casper WY

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.

Liberty Tax Service
(866) 871-1040
944 E 2nd St
Casper, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
1802 Dell Range Blvd
Cheyenne, WY

Data Provided by:
H&R Block
(307) 684-5125
510 W LOTT ST STE A
BUFFALO, WY

Data Provided by:
Payless Tax & Business Solutions
(307) 655-5543
307 E 3rd Street
Sheridan, WY
Prices and/or Promotions
20% off Your First Tax Return

Liberty Tax Service
(866) 871-1040
2205 E Pershing Blvd
Cheyenne, WY

Data Provided by:
H&R Block
(307) 877-5789
1100 PINE AveSTE 113
KEMMERER, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
944 E 2nd St
Casper, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
324 E Washington Ave
Riverton, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
1001 S Douglas Hwy # 240
Gillette, WY

Data Provided by:
H&R Block
(307) 532-5413
2109 MAIN ST
TORRINGTON, WY

Data Provided by:
Data Provided by:

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...

Click here to read the rest of this article from BusinessTaxRecovery.com