Mortgage Interest Deduction! How Much?

Amplify’d from firstexchange.com

Getting the Most from Your Home Mortgage Interest Deduction

Many tax advisors say that one of the most common errors on tax returns is claiming more home mortgage interest deduction than is actually available.  Many homeowners believe that all interest paid on a home mortgage is deductible, but there are limits based on which property secures the debt and how you used the money.

One of the biggest areas of confusion arises when homes are refinanced to take more money out than the original balance of the loan.  According to the IRS, refinanced acquisition debt is treated like the original acquisition debt, but only up to the balance of the debt immediately before the refinancing.  The rest of the refinanced debt is eligible for the interest deduction only to the extent it doesn’t exceed the $100,000 limit on home equity debt.  Read more at firstexchange.com

 

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