Mortgage Interest Tax Deductions
Taxpayers can usually claim mortgage
interest tax deductions. Below are some home mortgage interest
deductions tips to help taxpayers determine if they can
take any home mortgage interest deductions.
What is a home mortgage interest for tax
A home mortgage interest is any interest a
taxpayer pays on a loan secured by his or her primary
residential home or second home. A home mortgage interest can
a first mortgage
as second mortgage
a line of credit
a home equity loan
What are the requirements for deducting
home mortgage interest?
In order to qualify to deduct home mortgage
interest, the following tests for mortgage interest tax
deductions must be met.
The taxpayer must file the IRS tax form 1040 and
itemized deductions on Schedule A of the Form 1040.
The taxpayer must be legally liable for the home
mortgage loan. In another word, if the mortgage is
someone else's mortgage then the taxpayer cannot
claim any mortgage interest tax deductions on
that mortgage. There also must be a true creditor
and debtor relationship on the mortgage so the
lender will want to be repaid and the borrower
(taxpayer) will have to be liable to pay the loan
What type of mortgage interest qualifies
for the mortgage interest tax deductions?
The mortgage that qualifies for the mortgage
interest tax deductions must e a secured debt on a qualified
home such that the taxpayer who is claiming the mortgage
interest tax deductions has an ownership interest.
A home is a qualified home by the tax laws
if it is either the main home of the taxpayer or the second