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Mortgage Interest Deduction

   Also found in: Acronyms 0.01 sec.
Mortgage interest deduction
A federal tax deduction for interest paid on a mortgage used to acquire, construct, or improve a residence.

Mortgage Interest Deduction
In the United States, a tax deduction on the interest paid on one's mortgage. That is, one may reduce one's taxable income by the amount one pays in interest on all eligible mortgages. There are some limits to the mortgage interest deduction: for example, one may only deduct interest on the first $1,000,000 worth of mortgages, aggregated with other home debt. However, most homeowners can deduct all of their mortgage interest.


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Geared toward first time homebuyers, this article addresses the issue of income tax savings from the home mortgage interest deduction.
MORTGAGE INTEREST DEDUCTION Once they agree that the home will be listed and sold as soon as possible, Bill may wonder how to deduct the interest on the mortgage payments he is making while not living in the home.
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.
 
 
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