Mortgage Interest Tax Deduction 2008, 2009
63Are You Getting The Mortgage Interest Tax Deduction?
If you're a homeowner, then you'll want to be sure you're getting the full mortgage-interest tax break. You can usually deduct the interest you pay on a mortgage for your main home or a second home.
The interest on your home mortgage may be fully deductible as an itemized deduction. There is no dollar limit on the amount of interest you can deduct annually, but there are limits on the size of the mortgage on which the interest is claimed. The mortgage interest rules applies to both fixed and adjustable rate mortgages.
For your mortgage interest to be deductible it must meet these rules.
- The debt must be secured by the residence
- You interest on no more than two residences
- You are personally obligated for repayment of the debt
For the IRS, a home can be a house, condominium, cooperative, mobile home, boat, recreational vehicle, or similar property that has sleeping, cooking, and toilet facilities.
Your home mortgage must be secured by your main home or your second home. You can't deduct interest on a mortgage for a third home, a fourth home, and so on. If the loan is not a secured debt on your home, it is considered a personal loan and the interest you pay isn't deductible.
A deduction for mortgage interest is limited to two residences, your main home and a second residence.
To deduct interest on a home mortgage you must be personally obligated for it's repayment.
So, if you're a home-owner, be sure to see, if you qualify for the mortgage-interest tax break this year.
You can use the Free Tax Estimator provided by Turbo Tax Online to figure out your Mortgage Interest Deduction. Prepare and file your taxes with Turbo Tax Online and get all the deductions and credits you deserve!
Tax Related Articles
- McCain and Obama Tax Plans Side by Side Comparison
By Lela Davidson Ever since the candidates started debating I’ve wanted to understand how their respective tax plans stacked up. I have heard too many people repeating what one or the other of the candidates have SAID about their tax...
- $700 Billion Bailout Includes Tax Break for Bicycle Commuters
Tacked on last minute to the $700 billion bailout, bicycle commuters across the nation will be eligible for for a tax benefit that is already available to both train & bus commuters. After $700 billion of our American tax dollars...
- The Bailout Includes Lots of Treats
The historic bailout package signed into law recently by President Bush spells long-awaited relief for millions of taxpayers. Part of the new law prevents many people from being ensnared this year by the alternative minimum tax. Other provisions extend popular...
- Special Tax Deduction For Special Needs Cases
A child is diagnosed with several developmental disorders along with delayed motor, cognitive and social developmental skills. Specialists confirm that the child will need a support program for two conditions if he/she were to attend college. The parents are referred...
- Wednesday is Deadline for Taxes and Economic Stimulus Payments
What with all the turmoil going on in the financial world, it's easy to forget that Oct. 15 is the deadline to file a federal income tax return, which is needed to receive an economic stimulus payment or tax refund....
- Section 179 Tax Deduction Limits: Getting the Most from Qualified Expenses
Small businesses gain one extraordinary benefit from the current tax code under Section 179 of the Internal Revenue Code, pertaining to deductions for qualifying business equipment.Rather than requiring small business owner to set up multiple depreciation schedules for the purchase...
- What is AMT ( Alternative Minimum Tax) and How Can I Avoid Paying It?
The Alternative Minimum Tax (AMT) is a calculation of federal income tax that is separate from ordinary income tax, and must be paid in place of the ordinary income tax for any taxpayer who meets certain requirements. It is always...
- Ways You Can Benefit from the Home Office Deduction
If you use any portion of your home exclusively for business purposes, you are entitled to claim the home office deduction for that space in your home. “Exclusively” does not mean that it must be the primary or sole location...
Share it! — Rate it: up down [flag this hub]
working