2006-09-14 12:23:11 · 15 answers · asked by julia g 1 in Business & Finance ➔ Taxes ➔ United States
The interest and the real estate payments can be deducted if you itemize. Early in a mortgage, these items make up a large part of the payment.
If you itemize, that REPLACES the standard deduction, doesn't add to it. Standard deduction last year was $5000 for singles, $10,000 if married filing joint, so unless you have a lot of other itemized deductions, the home interest and taxes might not save you a lot.
2006-09-14 13:00:37 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Only the interest portion of the payment is deductible. The payments consist of interest and principal. The interest portion only is tax deductible if you itemized deductions on Schedule A. Real estate taxes are also deductible on Schedule A.
2006-09-14 16:10:08 · answer #2 · answered by tina s 1 · 0⤊ 0⤋
The interest is deductible, and also the property taxes are deductible. But not the payments on the principle.
2006-09-14 12:26:00 · answer #3 · answered by Bad Kitty! 7 · 0⤊ 0⤋
The interest you pay on the loan is tax deductable. In the early years that is most of the payment.
2006-09-14 12:25:19 · answer #4 · answered by quim f 1 · 0⤊ 0⤋
Only the interest on the Mortgage and the Real Estate taxes can be taken as an itemized deduction.
2006-09-14 12:30:23 · answer #5 · answered by Joe the Expert 2 · 0⤊ 0⤋
Not the principle.
Only interest and property tax. Next large deduction is the state tax you pay. This and the huge charitable contributions would add up to your itemized deductions, mostly.
JOE
2006-09-14 15:24:33 · answer #6 · answered by joetaxpayer 2 · 0⤊ 0⤋
No..you have to pay taxes on your home so why would the payments be tax deductible.
2006-09-14 12:25:16 · answer #7 · answered by Country Girl for Life 5 · 0⤊ 0⤋
The interest you pay on your mortgage payments is tax deductible
2006-09-14 12:25:01 · answer #8 · answered by GirlUdontKnow 5 · 0⤊ 0⤋
Only the interest is tax deductible.
2006-09-14 12:33:37 · answer #9 · answered by Hawaii808 2 · 0⤊ 0⤋
The interest portion of your payments are deductible, but not the principle...
2006-09-14 12:25:19 · answer #10 · answered by weirina85 3 · 0⤊ 0⤋