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Mortgage payment on tax deductions

Posted on: 03rd Sep, 2007 08:59 am
Say you take out a mortgage on a house. I was wondering what part of the mortgage payment would be tax deductible?
As far as I know monthly interest you pay on the mortgage is tax deductible.
Posted on: 03rd Sep, 2007 11:27 am
Yes Besmir, mortgage interest is tax deductible. For more details you can go through the IRS website: Home Mortgage Interest Deduction

Miller
Posted on: 03rd Sep, 2007 03:26 pm
"Say you take out a mortgage on a house. I was wondering what part of the mortgage payment would be tax deductible?"

I would like to add that points/loan origination fees paid is also deductible along with mortgage interest.
Posted on: 03rd Sep, 2007 06:06 pm
Hi Besmir,

The interest rate on a mortgage is tax deductible only under certain conditions. They are mentioned as follows:

1) The borrower must file Form 1040 to itemize the deductions on it.
2) The borrower must be legally liable for the loan or else he cannot deduct the payments.
3) The loan must be a secured debt against the home.
Posted on: 03rd Sep, 2007 09:25 pm
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