Qualified Residence Interest

Qualified Residence Interest

The interest one pays on the mortgage for one's qualified residence, which is one's primary residence. In the United States, one may take a tax deduction on qualified residence interest. 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 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.
References in periodicals archive ?
Home-equity indebtedness generates filly deductible qualified residence interest.
the total amount of acquisition debt that can give rise to qualified residence interest is $1 million .
You even can finance the acquisition of additional land, adjacent to your home, and deduct the interest as qualified residence interest.
Mortgage interest must meet the definition of qualified residence interest [Sec.
1 million of the debt as qualified residence interest.
In Revenue Ruling 2010-25, the IRS ruled that a taxpayer can deduct as qualified residence interest up to $1.
109-432) temporarily allowed taxpayers to treat qualified mortgage insurance as qualified residence interest, which is an itemized deduction.
163(h)(2) provides that the term "personal interest" means any interest other than trade or business interest, investment interest, passive activity interest, or qualified residence interest.
One homeowner felt that since he was being assessed to pay off the loan he should be allowed to deduct the interest as qualified residence interest under IRC section 163(h)(2).
The Tax Court held that, for purposes of calculating qualified residence interest, the Sec.
Individual taxpayers are permitted to take an itemized deduction for qualified residence interest.
On loans secured only by a worker's plan balance, interest is not deductible as qualified residence interest but is deductible if the loan is secured by both the account balance and the home itself.
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