The IRS Deductions Blog

Posts Tagged ‘mortgage’

Question: Is interest on debt tax deductible in the UK?

Answer: If the loan was for a business purpose, then generally it is deductable against the income arising from that business.

There are complications on decucting interest on Buy to Let properties where if the mortgage is greater than the value of the property when first let and you have not reinvested the money extracted into buying more property within that taxable pool, then you may have to restrict the amount of interest you can claim.

Also if you work predominantly from home, then you can claim a proportion of the mortgage interest you pay against your business income. You need to make sure that you claim the right amount so that you dont fall foul of CGT rules but your accountant can guide you through this.

Kind regards

David Nicoll
“the accountant with attitude”

Items on Amazon Right Now for Debt Tax Deductible:

Benny L. Kass Mailbag

Consider refinancing to pay credit debt Q:We will soon have our mortgage paid off. Our home is valued at $120,000. Unfortunately, we owe about $50,000 in credit-card debt. I took early Social Security and work part time. My husband will take full Social Security next March and continue to work full time. So we had planned to pay extra on the debt with his Social Security check and the fact that …

Self Employment Tax Tips : Debt Cancellation: Self Employment Tax

Question: I currently own my home outright with no mortgage. I am considering a mortgage to pay some bills and remodel.?

What Tax Deductions are available to me? Will this be treated as a purchase or refinance? Thank you.

Answer: It will be treated as a refinance. The mortgage interest you pay will be deductible on Schedule A – Itemized Deductions along with any points that you pay for a mortgage, but you will have to itemize to get any benefit out of the mortgage interest.

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Deadlines Loom for Consumers

As 2009 winds down amid talk of an economic recovery, government programs designed to help consumers—from mortgages to car loans—will begin to expire, according to a recent update from the California Society of CPAs.

Tax Credit for First Time Home Buyer Mortgage, $8000 Government Assistance Program for Home Finance

Question: If I pay AMT, is mortgage interest for my primary residency deductible?

Are charitable or any other Itemized Deductions allowed under the AMT? Thanks.

Answer: Interest used to buy home: Yes.
Interest from HELOC to do anything else unrelated to the home: No
Charitable Contributions: Yes
State Taxes: No
Property Taxes: No
Peronsal Exemptions: No.

The interest from your primary mortgage and your charitable contributions are still deductible under AMT. The biggies that aren’t are state and local taxes, personal exemptions as well interest on loan not used to buy or improve the home.

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Hayes explains individual income tax fundamentals

St. Clair County — It’s less than 30 days until tax day. April 15th will be here before we know it, so here are some basic fundamentals you need to know if you’re planning to prepare your own individual income tax return.

Late-breaking Tax Law Changes