• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Know mortgage write-off limits

by on
in Small Business Tax

Q: We took out a $320,000 mortgage to buy our home several years ago. We recently used inheritance money to pay off the $220,000 balance on the mortgage. Our house is now worth around $700,000. If we take out a new mortgage for $400,000, can we deduct all of the mortgage interest we'd pay? L.M.S., Montvale, N.J.

A: No. In this situation, your new mortgage would be treated as home-equity debt for tax purposes. You can only deduct interest on up to $100,000 of home-equity debt. If you pay the alternative minimum tax (AMT), it's even worse. You cannot deduct any of the interest under the AMT rules.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/22747/know-mortgage-write-off-limits "

Related Articles...

    No matches

Leave a Comment