lindauerndc asked:
I have an Interest Only mortgage and since mortgage interest is tax deductible, doesn’t that imply that my entire mortgage payment is deductible?
The Form 1098 I just received shows the “mortgage interest received” is only a fraction of the interest I paid this year. What percentage of mortgage interest IS deductible on these interest-only loans?
Thanks!
MICHEAL
I have an Interest Only mortgage and since mortgage interest is tax deductible, doesn’t that imply that my entire mortgage payment is deductible?
The Form 1098 I just received shows the “mortgage interest received” is only a fraction of the interest I paid this year. What percentage of mortgage interest IS deductible on these interest-only loans?
Thanks!
MICHEAL
JAMES
you may want to go to the irs web site and get more answers to those questions and at least there you will get the correct answers
Comment by witsend mama — August 17, 2009 @ 5:32 am
PATRICK
Is it possible that you are assuming that the whole payment is interest, when it is not? Is some of it going to escrow? Have you paid more than the minimum? If some of your payment has gone to principle, your principle balance should be lower. Check that out.
BTW, your actual interest is deductible, to the extent it, along with your other deductibles, exceeds the standard deduction.
Comment by ram — August 17, 2009 @ 9:14 am
FIDEL
Part of your payment might be a pro rata amount each month for real estate taxes and hazard insurance. Who pays those to the governmental agencies and the insurer — you or the bank? If the bank, part of your payment is that. At least the real estate taxes are deductable then.
Comment by portnoyscomplaining — August 19, 2009 @ 2:46 pm