It is a interest only loan
2007-02-02 01:03:06 · 2 answers · asked by Michael S 1 in Business & Finance ➔ Taxes ➔ United States
you can deduct the interest paid on a loan of up to $100,000 of indebtedness.
the interest is deducted with "mortgage interest" on schedule A, if you are itemizing your deductions.
2007-02-02 01:08:22 · answer #1 · answered by tma 6 · 0⤊ 0⤋
You will receive a Form 1098 from your lender. It will show the amount of interest paid on your loan in 2006.
Record this amount on Schedule A of Form 1040, in the section on interest.
If your loan is for more than $100,000 or for more than the equity in your home, your deduction is limited. The limitations are explained in the following IRS publication.
http://www.irs.gov/publications/p936/index.html
2007-02-02 01:09:38 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋