| The Mortgage Interest that you paid to acquire your | | | | state of law.Qualified Home means house, |
| first and second home can be deducted in your | | | | condominium, cooperative, mobile home, house trailer, |
| income tax. As you read on, you will learn how to | | | | boat, or similar property that has sleeping, cooking, and |
| deduct and calculate Mortgage Interest for your | | | | toilet facilities. And, the home is first and second home |
| income tax return. Plus, you will learn how Mortgage | | | | of the homeowner.Qualified MortgagesThe three |
| Interest works.How it worksThe Lender sends you | | | | categories are Grandfathered Debt, Home Acquisition |
| form 1098. The form 1098 shows how much mortgage | | | | Debt, and Home Equity Debt. Grandfathered Debt is |
| interest was paid. Using the values from form 1098, | | | | acquired mortgage prior October 13, 1987. If the |
| you transfer the values to Schedule A Form 1040 of | | | | Homeowner refinanced the mortgage, the mortgage |
| your income tax form.Requirements for Tax | | | | remains as Grandfathered Debt. Home Acquisition |
| DeductionsThere are three conditions to meet to be | | | | Debt is acquired mortgage after October 13, 1987 to |
| able to deduct mortgage interest. First, you must fill out | | | | buy, build, or improve a home. The total mortgage must |
| the Schedule A Form 1040. Second, you must be liable | | | | not exceed $1 million. Home Equity Debt is acquired |
| for the loan. Basically, the homeowner pays the | | | | mortgage after October 13, 1987 not to buy, build, or |
| mortgage payment. And, he owns the home. Lastly, | | | | improve a home. The mortgage must not exceed |
| the home must be a secured debt of a qualified | | | | $100,000 of the fair market value.IRS yearly |
| home.Mortgage, Deed of Trust, or Land Contract | | | | updateThis article may or not contain the most current |
| instrument secures a debt. The instrument provides a | | | | tax regulations, and laws. You may want to consider |
| way to satisfy debt in case of default, makes the | | | | checking with your trusted Tax Advisor or IRS. |
| owner liable to pay debt, and records under the local | | | | |