Quote:
Originally Posted by paulga
a little off topic, but I want to confirm is the "interest payment tax deduction" that goes to form 1040A is the combined number (mortgage interest + boat loan interest, it doesn't matter which one is "first home") as long as the combined loan principal <= $750K.
if the combined loan is $760K, then the interest payment deduction becomes 0, right?
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As I understand it (keep in mind that since I don’t have mortgage debt at that level that I’ve not paid a lot of attention) you can deduct the interest on the first $750k in debt. So in your $760k example, you would not be able to deduct the interest on that extra $10k.
Again, I don’t know how that would be done but your CPA can figure it out.