Bought House/Owner financed. Can I deduct the interest I paid on my federal tax?
2007-02-18 12:27:49 · 6 answers · asked by ylindale 1 in Business & Finance ➔ Renting & Real Estate
yes
Here's a helpful IRS publication -- the answer to your question is about half way through, but there are a number of other things you might find helpful
2007-02-18 12:39:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If it's qualified mortgage interest, then yes. I assume you mean the previous owner of the house financed your loan to buy the house. If so, the previous owner should have sent you a form 1098 indicating how much interest you paid him/her in 2006.
2007-02-18 12:31:02 · answer #2 · answered by T G 2 · 1⤊ 0⤋
Yes, if you itemize (use full 1040 with schedule B). Also don't forget to deduct points paid (spread-out over the number of years for the mortgage).
2007-02-18 12:32:54 · answer #3 · answered by GoodGuy53 5 · 0⤊ 0⤋
If you itemize, yes. You can also deduct the property taxes.
2007-02-18 12:30:47 · answer #4 · answered by Vegan 7 · 0⤊ 0⤋
Absolutely you claim interest as well as any property taxes you paid that year.
2007-02-18 20:43:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Absolutely yes... every year. Also, any closing costs.
2007-02-18 12:31:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋