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:
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Use Form 1040 (with your itemized deductions)
when you file your taxes
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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:
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You can deduct as much as $1 million in funds
used to buy, improve,or build your home
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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!