2006-11-18 02:52:08 · 7 answers · asked by monsoon05 2 in Business & Finance ➔ Taxes ➔ United States
Yes, if it is your main home or second home. The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible. Please note the above comments about whether an interesest only loan is a good idea, they are all valid points.
2006-11-18 10:13:28 · answer #1 · answered by RamsGod 3 · 0⤊ 0⤋
If the loan is on an original purchase of your personal residence, you will be able to deduct all of the interest expense on Schedule A of your individual tax return. If the loan was a refinance of your home...and you borrowed substantially more than you originally paid for the home (including updates)...part of the interest might NOT be deductible. If the mortgage was on a business building...and you used the proceeds for business purposes...all of the interest would be deductible on your business return...which would probably be a Schedule C that you would file with your individual Form 1040.
2006-11-19 18:16:54 · answer #2 · answered by dltcpa 2 · 0⤊ 0⤋
Yes all tax deductible.... Keep in mind NEVER do anything just because of the tax deduction.
The Interest Only mortgages are NOT good!! The lender will make it sound fantastic but if you pay attention you will see the faults. Do not do this type of mortgage, unless you don't care about being financially independent. Only people in dire straits go for something like this which in all actuality makes their financial hole bigger!!
2006-11-18 11:45:43 · answer #3 · answered by Kitty 6 · 1⤊ 0⤋
As long as you don't exceed the limits on total mortgage debt, all interest is deductible. If you can only afford interest payments, you can't afford the house. If housing prices fall, you will lose the house and still be in debt. If interest rates go up, your payments will follow.
2006-11-18 13:53:48 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
Absolutely; interest is interest, period. But I would think twice about an "interest only" mortgage. It will be years before you see any equity in your house. Equity is big part of gaining good credit scores. Perhaps you need to look at a less expensive property, where your equity can be built up.
2006-11-18 10:55:14 · answer #5 · answered by Country Boy 5 · 1⤊ 0⤋
YUP!
Bear in mind that the bank pays tax on interest income. You will receive a statement of interest paid to the bank.
2006-11-18 10:55:27 · answer #6 · answered by ed 7 · 0⤊ 0⤋
yes
2006-11-18 12:08:46 · answer #7 · answered by acmeraven 7 · 0⤊ 0⤋