Stern, Kory, Sreden & Morgan, AAC
Newsletter
Is My Home Mortgage Interest Fully Deductible?

Use this tool to determine whether your home mortgage interest is fully deductible or subject to limitations. First, check whether you meet the conditions to deduct home mortgage interest, then answer the questions below to determine the result.



1) Were your total mortgage balances $100,000 or less ($50,000 or less if married filing separately)?

You can deduct home mortgage interest only if all the following are true:
1) You file IRS form 1040 and itemize deductions on Schedule A (Form 1040)
2) You are legally responsible for the loan. You cannot deduct payments that you make for someone else if you are not legally obligated to make them. Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.
3) The mortgage must be a secured debt on a qualified home. Generally, your mortgage is a secured debt if you put your home up as collateral to protect the lender's interests. The term "qualified home" means your main home or second home. For details, see IRS Publication 936.


Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011