Qualified Residence

Qualified Residence

The place where a person primarily lives. If one owns his/her qualified residence, he/she may write off the interest on the mortgage from his/her income.
References in periodicals archive ?
The below list is not at all intended to include all of the extenders but highlights some that might be of interest: Mortgage insurance premiums treated as qualified residence interest; Continuation of the exclusion from gross income for the discharge of qualified principal residence debt; The ability to continue to take an above the line deduction for qualified tuition and related qualifying expenses; Continuation of empowerment zone tax incentives; Continuation of nonresidential energy property credit(actually extended through 2021); Continuation of credit for nonbusiness energy property; Continued credit for qualified new fuel cell motor vehicles; and A complete list of the extenders is included in (P.
New dollar limit on total qualified residence loan balance
When the mortgage exceeds the SI million debt limit, the 1RS concluded that the amount of qualified residence interest for each taxpayer is determined by multiplying the amount of interest paid by the taxpayer by a fraction, the numerator of which is $1 million and the denominator of which is the average mortgage debt outstanding during the year.
163(h)(3) treatment of mortgage insurance premiums as qualified residence interest, which permits a taxpayer whose income is below certain thresholds to deduct the cost of premiums on mortgage insurance purchased in connection with acquisition indebtedness on the taxpayer's principal residence.
These amounts continue to be treated as qualified residence interest under another extension (IRC section 163), but the deduction phases out for taxpayers with AGI from $100,000 to $109,000 for joint filers (half these amounts for married taxpayers filing separately).
Extension of mortgage insurance premiums treated as qualified residence interest.
California finally did extend the exclusion from COD income for qualified residence debt, so the state now conforms to the Internal Revenue Code in that respect.
For 2013, the provision allowing the discharge of a qualified principal residence debt to be excluded from income (up to $2 million) is available, as is the provision allowing mortgage insurance premiums to be deducted as qualified residence interest.
Special rules limit the deduction of personal interest (see Q 7923), qualified residence interest (see Q 7924), investment interest (see Q 7925), student loan interest (see Q 7930) and interest subject to the passive loss rules (see Q 7913, Q 7914).
Subject to the above limitations, qualified residence interest is deductible.
For example, investment interest is generally deductible only to the extent of investment income, qualified residence interest is generally deductible in full, trade or business interest is generally deductible as a business expense, and personal interest is not deductible at all (except student loan interest; see page 378).
You even can finance the acquisition of additional land, adjacent to your home, and deduct the interest as qualified residence interest.

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