With the tax deadline around the corner, we thought we would provide a few homeowner-related tax break tips over the next couple weeks that may help you.
#2: Paying Interest on a Mortgage
Your lender will be sending you a 1098 form that details how much interest you paid last year. Most likely your loan is less than $1 million (or $500,000 for those married but filing separately). In that case, you are allowed to deduct 100% of your interest and property taxes.
If your mortgage exceeds this, the IRS will limit the amount that you can deduct. In order to claim this deduction, however, a bit of itemization is required. To do this, you must calculate your total itemized deduction, compare it to the standard deduction from the IRS and then take whichever is higher.
Click here to view Tax Tip #1. As always, if you have any mortgage-related questions, Crosscountry Mortgage would gladly answer them! 877-828-8851.
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