Publication 936

Publication 936

A form published by the IRS explaining tax issues related to tax deduction for the interest paid on one's home mortgage.
Mentioned in ?
References in periodicals archive ?
A percentage of the total interest paid is deductible (see Publication 936).
Refer to IRS Publication 936 to check your eligibility.
If the new loan is paid off before maturity (e.g., the residence is sold and the loan paid off, or the loan is refinanced), the remaining unamortized balance of the points can be deducted in that tax year, unless the mortgage loan is refinanced with the same lender, in which case the unamortized points generally must be deducted over the term of the new loan (Letter Ruling 8637058; IRS Publication 936, Home Mortgage Interest Deduction).
Taken as a whole, IRS taxpayer guidance--Schedule A and its instructions, Publication 17, Your Federal Income Tax, and Publication 936, Home Mortgage Interest Deduction--generally informed taxpayers that mortgage interest deductions are subject to limits.
Note: See Internal Revenue Service Publication 936.
For these purposes, any reasonable method includes both the "exact" and the "simplified" methods described in the temporary regulations, the method provided in Publication 936, or a reasonable approximation of any of those methods until final regulations specifically addressing this issue are released.
However, Publication 936, in the instructions to line 13 of the "Worksheet to Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest for the Current Year," states that taxpayers may treat part of the secured debt that is not qualified residence interest in accordance with the use of the proceeds of the debt under the interest tracing rules in Temp.