Tips for Tax Deductible Mortgage Interest

If you’re like most people, then you’d very much like your mortgage interest to be tax deductible. Fortunately, there are many ways to make this happen.    

The first step is to choose to itemize deductions on your tax return. From there, you just have to follow some basic tips, including:

l  Use Form 1040 (with your itemized deductions) when you file your taxes

l  Be the named person, or at least one of the named persons, on the mortgage debt

As long as you can meet those basic points, you can typically deduct interest paid up to $.1.1 million! The only “catch” is that this option doesn’t apply if your mortgage was taken out before October 13, 1987. As long as your mortgage is more recent than that, however, you’re good to go!

Just keep in mind these basic limits as you deduct away:

l  You can deduct as much as $1 million in funds used to buy, improve,or build your home

l  You can deduct up to $100,000 of mortgage debt for any other purpose

If you need further help deducting mortgage interest of if you’re not sure that your mortgage uses fall into the above limits and are thus tax deductible, don’t worry; there is plenty of help available! A good financial professional can provide you with the advice and guidance you need, in any circumstance, to make the most of tax deductible mortgage interest or, failing that, other options to save you money come tax time!