ATTN:Home buyers

[JeffreyLebowski]

Is it true that the intrest you pay on your loan is tax deductible?
If so, is it all the intrest that is deductible, or just a percentage??

 

[conjur]

If it's your primary residence, all of the interest is deductible (although, there may be some odd exception to that that I'm unaware of...me being FAR from a tax expert.). You'll get a statement from your mortgage company to file with your tax returns.

 

[ITJunkie]

Yes...the interest is tax deductible off your federal returns. All the interest is deductible. If it is your first home purchase I also think you can write off the closing costs as well. I believe it is only the closing costs of a refinance loan that is percentaged out.

I would suggest talking to a local tax preparer to make sure about this though.

 

[JeffreyLebowski]

cool, well i'm about 1 job and a year away from it, but if i can get a job that pays what i used to make, i will have plenty for a downpayment this time next year.

 

[CPA]

Originally posted by: ITJunkie
Yes...the interest is tax deductible off your federal returns. All the interest is deductible. If it is your first home purchase I also think you can write off the closing costs as well. I believe it is only the closing costs of a refinance loan that is percentaged out.

I would suggest talking to a local tax preparer to make sure about this though.

You canNOT deduct closing costs on your federal return, except for that portion paid as interest. No other closing costs are deductible. If you refinance, only certain closing costs are deductible and yes, generally the deduction is spread over the life of the new loan