Interest deduction

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.
References in periodicals archive ?
The business interest deduction limitation is applied at the partnership level.
Mortgage interest deduction. Under the TCJA, taxpayers can deduct mortgage interest paid on acquisition indebtedness up to $750,000 ($375,000 for married taxpayers filing a separate return).
The IRS will issue future regulations that will cover the carryover of disallowed interest deduction of a C corporation under the previous rule to 2018, as well as rules for affiliated groups and consolidated returns.
He made the supposition that eliminating the mortgage interest deduction would hurt seniors, homeowners and cause home prices to drop by 10 percent.
Though we suspect that most investors will find it worthwhile to sacrifice some depreciation deductions as the tradeoff for preserving their interest deduction, the details will vary from investor to investor.
There is a bigger impact when the limitation of interest deduction is based on EBIT at 30%.
* Business Interest Deduction: Interest on real estate loans remains deductible for real estate investments, but using this deduction will lengthen the depreciation period for real estate assets.
Coloradans at every income level will receive a tax cut and popular provisions that help hardworking Coloradans like greater tax relief for childcare services, the student loan interest deduction, the medical expense deduction, and tax breaks for teachers are all part of the final bill.
Its call for a reduction in the home mortgage interest deduction brought immediate criticism from home builders and others.
Although the wealthiest taxpayers, with the largest mortgages, get the largest share of the interest deduction money, a significant portion of less wealthy taxpayers also benefit from it.
I hate the mortgage interest deduction (MID) and I never tire of telling people why.
The mortgage interest deduction is typically one of the largest tax breaks available to homeowners, as it allows you to write off interest on up to a $500,000 loan if you're a single tax filer, or a $1 million loan if you're a joint filer.