Mortgage Interest

Anyone who owns a home as their primary residence and has a mortgage on the property can deduct the mortgage interest as an itemized deduction on Schedule A of their personal income tax return. In order to deduct the amount you paid, you will need to use Form 8396. Typically you will receive a Form 1098 from your mortgage company, letting you know how much in mortgage interest you paid for that tax year.

However, it is important to note that you are only able to deduct the mortgage interest that you actually paid yourself. It is very common for older parents to pay for their children’s mortgage while the children get back on their feet. But if this occurs, the older parents are able to deduct the mortgage interest paid by them. The child cannot deduct the mortgage interest paid by their parents. If you or someone you know is havingtax issues, we can be reached at Hoorfarlaw.com or 816-524-4949.

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