if a 2nd mortgage goes into collections can you still claim it on your taxes?

3 ⤊

I know someone who in the past year had $26,000. taken out of there pay buy a law firm. $5,000 of it being interest.. Is this deductible?

2006-12-31 00:58:52 · 3 answers · asked by art k 3 in Business & Finance ➔ Taxes ➔ United States

yes.

2006-12-31 01:04:21 · answer #1 · answered by David B 6 · 1⤊ 0⤋

As long as the loan is secured by that home, it still counts as a mortgage. The method of collection is of no concern to the IRS.

2006-12-31 09:44:33 · answer #2 · answered by STEVEN F 7 · 2⤊ 0⤋

Yes if the interest was paid.

2006-12-31 17:53:28 · answer #3 · answered by woodluvto 2 · 0⤊ 0⤋