FinanceNook.com
Your One-Stop Quality Finance Article Source
 
Submit Your Articles On Auto-Pilot

Internal Revenue Service (IRS) still allows home owners to deduct mortgage interest on tax return. To qualify for the tax deduction, the home must be first or second home, the debt must be secured, the purchase price must not exceed $1,000,000, and the home loans equity must not exceed $100,000.

For an Interest Only Mortgage, you do not need to calculate. The whole amount is tax deduction. This article is useful for regular mortgage payment in which you need to calculate the mortgage interest tax deduction yearly. To avoid mistake, you can use the value on form 1098 which is sent by the lender every year. However, you might consider verify the accuracy of form 1098. Thus, you need to know how to calculate mortgage interest tax deduction.

The home owner pays off the principal for every mortgage payment. Therefore, the mortgage interest tax deduction changes every year. For example, the home owner purchases a home for $250,000 principal, 30 years, and 6.5% interest. The monthly mortgage payment $1,580.17. The interest on the first payment equals $1352.50 ($250,000 principal x (6.5 % interest / 100 / 12 periods)). Thereby, you add the interest for each payment in the year. The principal is different every payment. For example, the next principal equals $249, 772.33 ($250,000 principal - 1580.17 mortgage payment + [$250,000 principal x (6.5 % interest / 100 / 12 periods)] ). This translates to $16,167.13 mortgage interest tax deduction for the first year.

It is advisable to check with Tax Advisor and IRS with the current tax regulations and laws. The tax regulations and laws may change yearly.

Dennis Estrada is a webmaster of mortgage calculators website provide resources, and calculators for mortgage and real estate.

Article Source: http://www.FinanceNook.com
Your One-Stop Quality Finance Article Source


Listed below are more articles related to the above article.

People interested in the above article "Calculating Mortgage Interest Tax Deduction" are also interested in the related articles listed below:

Read more related articles in Home | Loans | Mortgages-refinance

FinanceNook.com Home  |  Top of Page
Copyright © 2006 - by Larry Lim, Singapore - FinanceNook.com™: Finance Article Search Engine Directory.
All Rights Reserved. All Trademarks and Servicemarks are the property of the respective owners.

United States of America . United Kingdom . Canada . Afghanistan . Albania . Algeria . American Samoa . Andorra . Angola . Anguilla . Antarctica . Antigua & Barbuda . Argentina . Armenia . Aruba . Australia . Austria . Azerbaijan . Bahamas . Bahrain . Bangladesh . Barbados . Belarus . Belgium . Belize . Benin . Bermuda . Bhutan . Bolivia . Bosnia-Herzegovina . Botswana . Brazil . British Virgin Islands . Brunei Darrusalam. Bulgaria . Burkina Faso . Burundi . Cambodia . Cameroon . Cape Verde . Cayman Islands . Central African Republic . Chad . Chile . China . Colombia . Comoros . Congo . Congo (Dem. Rep.) . Cook Islands . Costa Rica . Côte d'Ivoire . Croatia . Cuba . Cyprus . Czech Republic . Denmark . Djibouti . Dominica . Dominican Republic . East Timor . Ecuador . Egypt . El Salvador . Equatorial Guinea . Eritrea . Estonia . Ethiopia . Falkland Islands and Dependencies . Faroe Islands . Fiji . Finland . France . French Guiana . French Polynesia . Gabon . Gambia . Georgia . Germany . Ghana . Gibraltar . Greece . Greenland . Grenada . Guadeloupe . Guam . Guatemala . Guinea . Guinea Bissau . Guyana . Haiti . Honduras . Hong Kong . Hungary . Iceland . India . Indonesia . Iran . Iraq . Ireland . Isle Of Man . Israel . Italy . Ivory Coast . Jamaica . Japan . Jordan . Kazakhstan . Kenya . Kiribati . Korea (North) . Korea (South) . Kuwait . Kyrgyzstan . Laos . Latvia . Lebanon . Lesotho . Liberia . Libya . Liechtenstein . Lithuania . Luxembourg . Macau . Macedonia . Madagascar . Malawi . Malaysia . Maldives . Mali . Malta . Marshall Islands . Martinique . Mauritania . Mauritius . Mexico . Micronesia (Federated States) . Moldova . Monaco . Mongolia . Morocco . Mozambique . Myanmar (Burma) . Namibia . Nauru . Nepal . Netherlands . Netherlands Antilles . New Caledonia . New Zealand . Nicaragua . Niger . Nigeria . Niue . Norfolk Island . Northern Mariana Islands . Norway . Oman . Pakistan . Palau . Palestine . Panama . Papua New Guinea . Paraguay . Peru . Philippines . Poland . Portugal . Puerto Rico . Qatar . Reunion . Romania . Russia . Rwanda . Sahara . Saint Helena . Saint Kitts and Nevis . Saint Lucia . Saint Pierre & Miquelon . Saint Vincent & The Grenadines . Samoa . San Marino . São Tomé & Príncipe . Saudi Arabia . Senegal . Serbia . Seychelles . Sierra Leone . Singapore . Slovakia . Slovenia . Solomon Islands . Somalia . South Africa . Spain . Sri Lanka . Sudan . Suriname . Swaziland . Sweden . Switzerland . Syria . Taiwan . Tajikistan . Tanzania . Thailand . Togo . Tongo . Trinidad & Tobago . Tunisia . Turkey . Turkmenistan . Tuvalu . Uganda . Ukraine . United Arab Emirates . Uruguay . Uzbekistan . Vanuatu . Vatican City (Holy See) . Venezuela . Vietnam . Yemen . Zaire . Zambia . Zimbabwe


Template Design by Larry Lim | Powered by Article Dashboard

Powered by Article Dashboard