The IRS Deductions Blog

Posts Tagged ‘interest’

Question: How is the tax break provided on home interest payment? Is it at tax-file time or at tax-witholding time?

I know that home mortgage interest payments are tax-deductible. What I dont know is when I take off the tax-deduction – is that something that can be done ONLY when I file my taxes at the end of the year?

Answer: Yes it must be claimed as an Itemized deduction on the Schedule A when you file your return, If you do not Itemized you can not claim the Mortgage Interest

Publication 936

http://www.irs.gov/publications/p936/ind…

Items on Amazon Right Now for Tax Deduction Mortgage Payments:

Some in big rush to pay taxes

As many as 30 or so people at a time lined up outside the treasurer’s office on the 17th floor of the Franklin County Courthouse to end the year by paying their property taxes.

Deduct Your Mortgage Payment in Canada

Question: Can one have more than one “2nd home” for mortgage interest & Property Tax Deduction?

If one has several vacation properties, is he only allowed to deduct mortgage interest and property tax on his primary home and only 1 other property?

Answer: Yes unless one is a rental.

Items on Amazon Right Now for Mortgage Deduction Taxes:

Critics question Post partnership

Critics are calling on WaPo to stop printing news articles from The Fiscal Times.

Homeowner & Mortgage Tax Tips from Quicken Loans

Question: Is mortgage interest a tax deductible expense to offset rental income?

Answer: Mortgage interest on rental property is deduction.

See Schedule E for a list of other deductions.

Items on Amazon Right Now for Interest Tax Deductible:

Cat fished out of river still needs good home

FAIRHOPE, Ala. — A cat rescued from the jaws of death nearly three months ago is still looking for a loving home. River, a 10-month-old, short-haired feline, was so named because he was plucked from the Bon Secour River on Oct. 4. It is believed he was hit by a vehicle on nearby County Road 10 before attempting to swim to safety.

Today’s Mortgage News: How to Increase your 2009 Mortgage Interest Tax Deductions

Question: Main house in Canada, is the mortgage interest deductible?

I work in US, but my family is in Canada, and we bought house in Canada (no house in US). Wonder whether the mortgage interest paid in 2008 is tax deductible. Thanks.
Sorry, I forgot to mention the question is about the deduction in US income tax return.

Answer: Yes it is. However, you should talk to a professional as there could be a requirement for you to withhold 30% of the payment and then the bank would have to claim this back from the government. As no bank would want to do this, they would just increase your payment by enough to cover the withholding, which you would not want. So, talk to an expert first.

Items on Amazon Right Now for Deductible Interest On Mortgage:

Cautious Canada

The country has avoided the financial pitfalls of the U.S.–for now.

Åpningsbilde du møter på hotnot.no er det bildet som var hot

Question: Bennefit of having debt on home?

I own a home in NC and have no debt against my primary residence. I would like to purchase a second home in SC. The cost of the home will run about $500,000. I have cash for the purchase but I also understand that from an after-tax standpoint, I might benefit from having some debt against the house if I am able to deduct the interest expense. I want to know the maximum amount of debt I can take out and have the interest be deductible. I am also thinking about borrowing against my margin account to purcahse a more expensive house.
Please advise.

Please list where in the Internal Revenue Code Section your information comes from and also cite an court cases you reference to or use.

Answer: The total amount you can treat as home acquisition debt at any time on your main home and second home cannot be more than $1 million ($500,000 if married filing separately). This limit is reduced (but not below zero) by the amount of your grandfathered debt (discussed later). Debt over this limit may qualify as home equity debt (also discussed later

Publication 936

http://www.irs.gov/publications/p936/index.html

http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000163—-000-.html

Items on Amazon Right Now for Deductible Margin Interest:

RHB Research lowers VS Industry fair value, reduced to market perform

KUALA LUMPUR: RHB Research Institute has lowered its indicative fair value for VS Industry to RM1.27 from RM1.36 based on unchanged target CY10 price-to-earnings ratio (PER) of 6.0 times and downgraded its recommendation to market perform from outperform.