i can claim full interest & Principle in my Income tax pls tell me because i want to claim my it
2007-11-05 00:27:23 · 5 answers · asked by pramod a 1 in Business & Finance ➔ Renting & Real Estate
If it is a purchase, you can deduct property taxes, interest & points in the year paid.
If it is a refinance, you can deduct the property taxes, & interest in the year paid. Points are deductible prorated over the term of the loan.
Borrower's closing costs, that are deductible, can be claimed by the borrower even if paid by the seller.
2007-11-05 02:36:59 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You may deduct the interest on a mortgage for a primary or second residence. You can NEVER deduct the principal. You may also deduct the ad-valorem property taxes paid.
You must itemize deductions to get any benefit from the home mortgage interest and property tax deductions.
If the totals are less than your standard deduction ($5,350 for Single or $10,700 for Married Filing Jointly) then it's not worth claiming it.
2007-11-05 00:32:42 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You should consult with a tax attorney to be certain as to your financial situation. In most cases you can deduct the interest paid on a mortgage loan, and property taxes, but never the principle of the loan.
2007-11-05 00:39:50 · answer #3 · answered by Alterfemego 7 · 0⤊ 2⤋
Aren't there also deductable fees you possibly paid when purchased. (Provided the sellers didn't pay them?)
We mail a Hud1 to all of our clients over the last year so they can take advantage of every write off their tax guy can get them.
2007-11-05 00:41:02 · answer #4 · answered by Anonymous · 1⤊ 1⤋
only interest 100% tax exemption on it
2007-11-05 00:40:21 · answer #5 · answered by Udit D 4 · 1⤊ 1⤋