Posted on: 20th Oct, 2009 02:18 am
In a recent announcement, the Internal Revenue Service (IRS) has concluded that a taxpayer with 1 million-plus mortgage can deduct interest on the first $1.1 million of a home mortgage. It is estimated that around 137,670 taxpayers would be benefited from this new rule. Taxpayers can save up to $3,000 a year depending on their tax bracket and the interest rate on their mortgages. Also, the taxpayers can file amended returns for the last 3 years which will help them in claiming quite a higher amount in refunds.
Hi Niicss,
Its indeed a great news for the taxpayers with 1 million plus mortgages.
Homebuyers purchasing a home worth more than $1 million can now claim tax deductions on $1.1 million. However, the rule was different earlier. The homeowners could get tax deductions only on $1 million for a $1 million plus mortgage. In the new rule, the residential mortgage amount above $1 million can be treated as home equity debt. So, if a homebuyer takes a mortgage of $1.1 million, then $1 million will be counted as purchase indebtedness. The rest of $100,000 will be counted as home-equity indebtedness.
Take care.
Its indeed a great news for the taxpayers with 1 million plus mortgages.
Homebuyers purchasing a home worth more than $1 million can now claim tax deductions on $1.1 million. However, the rule was different earlier. The homeowners could get tax deductions only on $1 million for a $1 million plus mortgage. In the new rule, the residential mortgage amount above $1 million can be treated as home equity debt. So, if a homebuyer takes a mortgage of $1.1 million, then $1 million will be counted as purchase indebtedness. The rest of $100,000 will be counted as home-equity indebtedness.
Take care.