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