The media is abuzz with Tax Reform news, here to allay your confusion regarding the cut to some deductions and tax rates is my latest blog post. The media is abuzz with Tax Reform news, here to allay your confusion regarding the cut to some deductions and tax rates is my latest blog post.
The tax rates change has been the most publicized but there are many deductions on the chopping block that will drastically change how you prepare your taxes and/ or your bottom line. Read More
Certain types of interest you pay are deductible as an itemized deduction. The types of interest you can deduct on Schedule A are home mortgage interest, points in some cases, and investment interest.
Home Mortgage Interest
Home mortgage interest is the most common interest deduction on a typical Schedule A, and is any interest that you paid on a loan secured by a main home or a second home. To qualify for the home mortgage interest deduction, the following rules apply:
• You must be legally liable for the loan. Therefore, you cannot deduct interest payments you make for someone else if you are not legally liable to make those payments. Read More
It is becoming increasingly common for couples to live together and remain unmarried, which can lead to potential tax problems when they share the expenses of a home but only one of them is liable for the debt on that home.
Home mortgage interest can generally be deducted only by a person who is legally obligated to pay the mortgage (in other words, a person who is named as an obligor on the mortgage document). However, there is an exception to the preceding general rule for interest paid on a real estate mortgage when a person is a legal or equitable owner of the real estate but is not directly liable for the debt.
For example, if the one who is not liable on the mortgage makes the payment, that Read More