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Interest Deduction

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Interest deduction
An interest expense, such as interest on a margin account, that is allowed as a deduction for tax purposes.

Interest Deduction
A reduction in one's taxable income that comes from expense from certain interest payments. For example, the interest one pays on one's mortgage is tax deductible so as to encourage home ownership. Likewise, interest paid on a margin account is often deductible. The United States government uses interest deductions, among other statutory tax advantages, to encourage behavior it supports without mandating it.


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GAO-09-769 July 29, 2009 The home mortgage interest deduction is the third most expensive federal income tax expenditure, with the government expected to forgo about $80 billion of revenue for the deduction in 2009.
In 2005 it was estimated that: * The mortgage interest deduction will cost the Treasury $72.
Once the interest deduction was lost, greedy new businesses emerged with new ideas to give us easy money to buy our cars, toys, etc.
 
 
 
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