MORTGAGE INTEREST GUIDE

In my opinion the area of the Tax Code where proper documentation and strict adherence to the law is perhaps the most overlooked (or actually ignored) is the deduction for mortgage interest – both on Schedule A and Form 6251.

Taxpayers are required to keep separate track of acquisition debt and home equity debt, to make sure that the deduction on Schedule A does not include interest on debt principal that exceed the statutory maximums, and to determine what interest deduction to add back on Form 6251 when calculating Alternative Minimum Taxable Income.  However, I firmly believe that 99.5% of taxpayers do not do this.  I do not know of any taxpayer who does.  And I expect that the majority of tax preparers do not do this for their taxpayer clients.

 

I have created a MORTGAGE INTEREST GUIDE.  In it I explain the various types of mortgage debt and the deduction limitations, and go into detail on how refinancing an acquisition debt mortgage can result in home equity debt.  THIS GUIDE HAS BEEN UPDATED TO REFLECT THE TAX LAW CHANGES MADE BY THE TAX CUTS AND JOBS ACT.  WITH HOME EQUITY INTEREST NO LONGER DEDUCTIBLE IT IS MORE IMPORTANT THAN EVER TO KEEP SEPARATE TRACK OF ACQUISITION DEBT AND HOME EQUITY DEBT! 

I include in this guide two worksheets – one for Acquisition Debt Activity and one for Home Equity Debt activity – and provide a detailed example of how to use the worksheets. 

 

My MORTGAGE INTEREST GUIDE is only $2.00 delivered as a pdf email attachment - or $3,00 for a print version sent via postal mail.  Order your copy by sending your check of money order payable to TAXES AND ACCOUNTING, INC, and your email or postal address, to -

 

MORTGAGE INTEREST GUIDE,

TAXES AND ACCOUNTING, INC

POST OFFICE BOX A

HAWLEY PA 18428