Traverse City, MI -- (SBWIRE) -- 10/16/2015 -- Filemytaxesonline.org now features an article by tax expert Frank Ellis, which discusses the home loan mortgage interest tax deduction from the IRS. By allowing this deduction, the government helps motivate people to buy houses, says the author. The article first covers collateral. To ensure the mortgage is paid back, the financial institution stays on the deed. Homes with this kind of security interest, Ellis says, could qualify one to deduct interest payments.
Loan contracts should say what will happen if one fails to pay their mortgage. A condition in which interest charges are not deductible is if one uses a credit card to help buy a house, and the author explains why. Also, the IRS restricts how many houses can receive a deduction. Taxpayers can pick up to two houses that can qualify. Some other provisions related to this are discussed further.
The author goes on to talk about deduction restrictions. For example, deductions can be claimed on interest paid on up to $1 million in mortgage balances. Ellis gives an example in this section of the article.
Also covered is home equity loan interest. The interest payments may be eligible for a deduction, but mortgage loans must have been received after October 13, 1987, says the author. Income tax rules and how home equity is calculated is explained by Ellis in more detail within this section.
Reporting the deduction is explained next. This gives taxpayers with home mortgage interest a clearer understanding of how to take advantage of this beneficial deduction. Lastly, Ellis talks about how TurboTax is able to recommend the best tax deductions which one qualifies for.
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To read more about the home loan mortgage tax deduction, go to
http://filemytaxesonline.org/home-loan-mortgage-interest-tax-deduction/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Contact Information:
Frank Ellis
File My Taxes Online
945 East 8th Street Suite A, Traverse City, Michigan 49686
Website: http://filemytaxesonline.org/