The IRS Deductions Blog

Posts Tagged ‘interest’

Question: I simply find Bank of America a bunch of thieves, I asked them for help and they left me out?

I requested a loan remodification from two financial institution that I have a home with ( chase + bank of America 80;20). I requested it upoan losing one of my jobs i have called these FOOLS every other day. But no one listens to me. I have never missed a mortgage payment but I cannot continue paying this amt , so what’s the worst that could happen My credit score i know that BUT I tried to talk to them but they said NO loose my Tax Deductions, I can save much more living in an appt . basicall I just want to mail in the house keys and they can figure it out, because i did right by paying on time they will not listen to me I seem not to have a problem.

Answer: If your loan is owned by Freddie Mac you may be able to refi this with another lender under the making home affordable program. Don’t know if this is the case with loans owned by Fannie Mae.

Items on Amazon Right Now for Mortgage Deduction And Amt:

Brian J. O’Connor: Gazing ahead to April 15: Compromise bill means your tax picture is getting clearer

A little clarity has emerged at the last minute for taxpayers, thanks to the president’s proposed tax compromise, which leaves a little less than three weeks to make any end-of-the-year tax moves.

Memphis attorney Vincent Perryman discusses Tax Law with Gus Wilson Part 1

Question: Mortgage interest deduction?

Hi all,
I have a house under my name bought two years ago by my cousin.He pays all the bills,like the mortgage,taxes,insurance and everything that has to do with it.What happpens when tax time comes?Does he deduct the mortgage interests or me?My income is very low to be able to afford all those payments for the house,even the interests alone are half of my income.So what is the best bet here,should I just file my taxes without deductiing the mortgage interests or try to have him deduct it from his taxes and how does that affect me with the IRS.Help Please.
Thanks

Answer: Hello There!

Well, I have a few questions for you.

Do you live in the house? Why is the house in your name? That is a very dangerous thing to do for a friend or a relative! You could end up with really screwed up credit if the house should ever go into foreclosure or have any late payments on the mortgage.

You should immediately go to a lawyer, and get your cousins name added to the ownership of the house. Yes, get it in both names if you aren’t paying any thing for it. And GET A LEASE FROM YOUR COUSIN! That way you are now in a business owning and renting the house to your cousin, and you can take all the deductions!

YUP! The mortgage interest, the real estate taxes, and any repairs! That will give you an incredible tax deduction. And with his name also on the mortgage, you can SPLIT the deductions if you want, count half of what he pays for these things as income, and off set it with half the costs. This will give you both Tax Advantages! And with income low, you would be both maximizing the deductions against your incomes and get nice big fat refunds.

If his income is just enough to pay the bills, he probably isn’t getting the best Tax Deductions anyway! So, some of the Tax Advantages are probably just going to waste. See a good Tax Accountant or Tax Lawyer with him, and they can do the right thing as far as sharing the tax advantages of owning a home for both of you.

You both need to sign agreements as to how much each of you are taking as a Tax Deduction to keep this all legal.

Please, see somebody who knows about this. Someone who can get the right papers signed by both of you, so you both can maximize the tax advantages of home ownership. It is possible to do this. And since you were nice enough to put a home for him in your name, and he probably doesn’t get the total tax advantage anyway, this could be a win/win for both of you.

Good Luck, I know this can be a touchy situation with family members, but maybe he will understand that he isn’t getting all that great of a tax break, and he could probably get the same advantages and share the remainder with you.

Think about it. If he loses $100 off the full potential of the tax advantage he gets, and you can get $2000 of a tax advantage, shouldn’t he do that for you? Yeah, it can work out that way.

It can be done by a sharp accountant or a Tax Attorney. Do it!

Items on Amazon Right Now for Mortgage Interest Tax Deduction Irs:

Buying a home as a tax shelter is risky now

Q: I sold my home this past May as a short sale and even though it sold for the amount I purchased it for in 2003, I still came away with a $50,000 promissory note to the lender that I’m paying off (without interest) for the next 15 years.

Tax Tips & Advice : How to Deduct Home Mortgage Loan Interest

Items on Amazon Right Now for Mortgage Interest Tax Deduction Obama:

Time to pay the piper: would you sacrifice your mortgage deduction to the national debt?

It was, for decades, the true third rail of politics: while raising taxes is never popular, nor politically wise, talking about scaling back or eliminating the tax deduction that homeowners get for paying interest on mortgages is as taboo as it gets.

First Time Home Buyer Tax Credit Program, FHA Mortgage, Fixed Interest Rate Loan

Question: If I pay $10K in fed income tax and I pay $10K in mortgage intrest and prop tax, is all 10K deductable?

Is mortagae interest and property taxes a 1 for 1 ratio when dealing w/ U.S.A. federal income Tax Deductions? I’m looking at building a house and I will be paying about $11,000 in interest my first year and I expect property taxes to be about $4,000 per yr. My wife and I currently pay about $14,000 total in for Fed. Income taxes (we currently rent a home). Will I be able to get ALL of that $14,000 back as workable income after I deduct my interest and real estate taxes??…or is there a limit as to how much I can deduct?? Thanks.

Answer: You do not receive dollar for dollar back from the government from paying your mortgage interest. You get to adjust your gross income by subtracting the interest paid from your gross wages/tips/other income.

If you worked 1 job and had no other income and you made $50,000 then you can subtract the $11,000 from that making your Adjusted Gross Income (AGI) $39,000.

Items on Amazon Right Now for Income Tax Mortgage Interest Deduction:

Turn your tax refund into a virtuous circle

Fantasizing about what to do with your tax refund? Paying off debt or investing it in a tax-sheltered savings plan is the best route to financial freedom

Buying a Home in 2010… Taxes Do Matter

Question: Is home equity mortgage interest deductible for home office expenses?

The money was used to pay off credit cards. I am still paying on the home equity loan. If I do a home office deduction, which I qualify for in every way, can I use the home equity loan interest as a deductible expense?

Answer: Be careful with that, its not really worth to pursue it. You can get caught and then have problems with IRS.

The amount you talk about is so small, you shouldn’t bother really.

Items on Amazon Right Now for Deductible Interest Expense:

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